Opinion: Emergency measures needed to save the European steel industry from ruin

By Axel Eggert, Director General of the European Steel Association

(Opinion) On the occasion of the extraordinary Energy Council, the European steel industry calls on EU policymakers to provide immediate relief against high energy prices and costs for energy-intensive sectors exposed to international competition.

Conventional trade and energy policy measures are insufficient and would seriously put at risk the survival of these sectors, which are the backbone of the EU’s value chains.

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The current gas and electricity prices threaten the viability of steelmaking in the EU.

Producers from third countries, which are not subject to such constraints or whose governments do not take similar measures against Russian aggression, take advantage of the situation by exporting massively to the EU at distorted prices.

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Consequently, Europe is witnessing steel plant closures, production curtailments, and layoff programs.

The war in Ukraine and the subsequent, necessary EU sanctions against Russia have thrown the EU into an exceptional crisis.

“It requires exceptional and immediate measures by EU policymakers to prevent the destruction of Europe’s industrial base, going beyond the EU’s usual ‘rule book’, including swift trade emergency measures”, said Axel Eggert, Director General of the European Steel Association (EUROFER).

“The current crisis undermines the business model of several energy-intensive industries, which are the backbone of entire industrial value chains.”

“This means concrete risks for high-value jobs, investments, and know-how in Europe to the advantage of third countries that benefit from far lower energy prices and do not share the same level of climate ambition”, he added.

An EU-wide response is necessary for Europe to overcome the emergency while pursuing further integration of the national energy markets.

Given the severity of the crisis, a package of different solutions is needed, and no option should be left off the table.

If EU institutions do not take urgent measures for energy-intensive industries exposed to global competition, their survival is highly uncertain.

However, preliminary Commission proposals fall short in this regard.

“The European steel industry is ready to contribute to the efforts of European policymakers in developing concrete solutions to overcome the crisis and deliver a more united and prosperous EU”, concluded Mr. Eggert.

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EUROFER is located in Brussels and was founded in 1976. It represents the entirety of steel production in the European Union.

EUROFER members are steel companies and national steel federations throughout the EU.

The major steel companies and the national steel federation of Turkey and the United Kingdom are associate members.

ABOUT THE EUROPEAN STEEL INDUSTRY

The European steel industry is a world leader in innovation and environmental sustainability.

It has a turnover of around €125 billion and directly employs around 310,000 highly-skilled people, producing on average 153 million tonnes of steel annually.

More than 500 steel production sites across 22 EU Member States provide direct and indirect employment to millions more European citizens.

Together with Europe’s manufacturing and construction industries, steel is the backbone of Europe’s development, growth, and employment.

Steel is the most versatile industrial material in the world. The thousands of different grades and types of steel developed by the industry make the modern world possible.

Steel is 100% recyclable and is a fundamental part of the circular economy.

As a primary engineering material, steel is essential in developing and deploying innovative CO2-mitigating technologies, improving resource efficiency, and fostering sustainable development in Europe.

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