De-globalisation: Can Europe supply itself with steel and aluminium?

Inhaltsverzeichnis

(Hier finden Sie die deutsche Version des Beitrags)

Steel plays an outstanding role as a material in Germany. In 2021, per capita consumption in this country was 426 kilograms. This figure includes not only the 180 kilograms from applications for private consumption. Steel consumption for buildings, infrastructure, transport and mechanical engineering is also included in the statistics.

Last year, Germany was able to cover its steel needs at least theoretically from its own production. Steel is produced at more than 20 locations in this country. But the metal is often not used at home, but exported. In 2020, about 60 percent of German steel production went abroad - around 22 million tonnes. At the same time, however, 20.4 million tonnes were imported. This back and forth arises from different uses of the steel. Before the embargo, for example, Russia supplied bulk steels to Europe that are used in the construction industry. Germany, on the other hand, exports steel that is used in the car industry or in mechanical engineering.

About raw materials and de-globalisation:

The past months have painfully shown that dependence on resources comes at a high price. But can the wheel still be turned back? So let's take a look at the supply situation.

How far Europe could supply itself with strategically important raw materials and what that means for industry is what we want to explore with a raw materials article series.

• New Series: De-Globalisation - How Independent Can Europe Be?
• De-globalisation: Can Europe supply itself with lithium?
• Rare earths and platinum group metals: Can Europe be self-sufficient?
• De-globalisation: Can Europe supply itself with steel and aluminium?
• De-globalisation: Can Europe supply itself with copper?

EU balance sheet negative

The fact that Germany's export balance for steel is positive is not a matter of course. From 2014 to 2018, imports were higher than exports. The balance for the EU has been negative for a long time. Europe has not been able to cover its steel needs from its own production since 2015. Those who have to buy steel will almost certainly do business with Chinese producers.

Almost two billion tonnes of steel were produced worldwide in 2021, more than half of which came from China. The country dominates the market. The largest Chinese manufacturer, the China Baowu Group, alone produced more steel than India in 2021. India, as the second largest manufacturing country, produces only one tenth of what is produced in Chinese smelters.

Even if the steel balance is positive at first glance, Germany remains dependent on imports. Iron ore is needed to produce steel, and Germany must import this raw material in its entirety. This also applies to coking coal, which is used to extract iron from the ore. In the past, the mines in Saarland and the Ruhr area supplied the German steel industry with coal. Since the last miners have left the pits, hard coal must also be imported.

Although German manufacturers are already testing hydrogen as an alternative, these processes cannot yet be used on an industrial scale. The switch to hydrogen was originally intended to improve the steel industry's carbon footprint, but the method also reduces dependence on the world market.

Recycling almost without loss of quality

Germany is well positioned when it comes to recycling steel. About one third of new steel is already made from scrap metal. To do this, scrap is melted into steel in an electrically operated electric arc furnace. According to the German Steel Federation, the recycling circuit for scrap steel is well organised. The collection rate for construction steel at the end of construction use in Germany, for example, is around 97 percent. Steel can be recycled with virtually no loss of quality. Every tonne of steel extracted from iron ore is equivalent to four tonnes of new steel products after being recycled six times, reports the industry association.