

(Posted on 09/09/22)
The European steel industry has called on EU policymakers to provide immediate relief against high energy prices and costs also for energy-intensive industries exposed to international competition. Conventional trade and energy policy measures are clearly insufficient and would seriously put at risk of survival these sectors, which are the backbone of the EU’s value chains.
“The current gas and electricity prices threaten the viability of steelmaking in Europe, while third country producers not subject to such constraints or whose governments do not take similar action against the Russian aggression take advantage of the situation by exporting massively to the EU at distorted prices. As a consequence, in Europe we are witnessing steel plant closures, production curtailments and layoff programmes. The war in Ukraine and the subsequent, necessary EU sanctions against Russia have thrown the EU into an exceptional crisis which 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 also 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.
EUROFER AISBL is located in Brussels and was founded in 1976. It represents the entirety of steel production in the European Union.
ADM, a leader in sustainable agriculture supply chains, has announced an important expansion of its... Read more
Trafigura, a market leader in the global commodities industry, has agreed to invest in an all-in-one... Read more
ADM and Marathon Petroleum Corp. have celebrated the opening of their joint venture soybean processing... Read more
Former U.S. Grains Council (USGC) Director of Global Programmes Alejandra Castillo was named the successor... Read more
Rio Tinto has completed the acquisition of PanAmerican Silver’s stake in Agua de la Falda and... Read more
Cargill has completed an expansion and modernization project at its integrated soybean crush and refined... Read more
BHP has approved an investment of US$4.9 billion (C$6.4 billion) for stage two of the Jansen potash... Read more
Rio Tinto and cable solution provider Prysmian are partnering to build a more sustainable North American... Read more
The American Soybean Association has applauded the U.S. Department of Agriculture’s efforts to... Read more
Rio Tinto has appointed James “Joc” O’Rourke as a non-executive director with effect... Read more