THE IMPACT OF GOVERNMENT REGULATION, SUBSIDIES AND GREEN PRODUCTION STANDARDS ON THE GLOBAL STEEL MARKET

Abstract

The article examines the current state of the world steel market, addressing the current trends regarding production volumes, demand, exports, and special factors influencing these changes. Particular attention is directed towards individual elements that have a characteristically high level of influence on the formation of the levels of global demand and supply for steel and other derived products. Such an influential factor as state subsidies (including grants, income tax concessions, or below-market borrowings) is analyzed in theoretical and practical dimensions, including a general analysis of its application worldwide and, in particular, using the example of China`s success in government-led developments in steel production. The nuances of the influence of norms on decarbonization and accommodation of "green" means of steel production are also evaluated, using the example of the European Union, while also addressing the economic feasibility and advantages of introducing "clean" means of steel production. The article also includes a dive into the topic of current changes in state and regional regulation of steel trade, using the example of import quotas to the EU and the introduction of tariffs on excess imports. A general assessment of the influence of the aforementioned factors and the potential implications of their application on the world steel market is provided within the work. Moreover, it raises a question of the need for balancing the environmental safety requirements and economic safety guarantees, both of which are extremely important for the EU and other countries. The relevance of this topic is further emphasized by the importance of implementing decarbonization agreements and the potential scale of the consequences of expanding existing restrictions and subsidies for the industry, both for individual countries and for the global economy. This is important, considering the context of generally declining trends in steel demand and growing volume of production, which has the potential to further shake up the trade balance on the steel market and, by extension, on other steel-dependent markets.