German steel regions call for extension of EU safeguard quotas

Tuesday, 06 February 2024 14:21:18 (GMT+3)   |   Istanbul

A new German initiative, the Stahlallianz (Steel Alliance), representing 11 steel-producing regions in the country, has called on the federal government to work towards fair competitive conditions for the domestic steel industry, strengthen Germany as a steel location, and to create better investment prospects.

The Stahlallianz seeks the extension of the safeguard quotas on steel imports, which is due to expire in June 2024, until mid-2026, in line with WTO rules, to avoid trade diversions that distort competition. The alliance is also asking for more steel products to be included in the carbon border adjustment mechanism to protect steel production in Europe.

With regard to electricity price levels, the alliance praises the federal government’s decision to reduce the electricity tax for the manufacturing industry to the European minimum. However, it warns that an internationally competitive price is still a long way away. What is particularly necessary is a stabilization of network fees and bridging the financing of electricity prices for energy-intensive industries, the Stahlallianz stated.