The European Metallurgical Association (Eurometaux) has published a joint letter from 40 heads of European steel groups regarding rising energy prices.
According to a released document, last month several companies were forced to announce indefinite closures due to rising energy prices, while all manufacturers face electricity and gas costs more than ten times higher than in last year, which far exceeds the selling prices of their products.
According to the association, Europe has already reduced about half of the production of aluminum and zinc, which are used in the production of a wide variety of products - from cars, aircraft and packaging to galvanized steel.
The letter states that Europe's clean energy goals require a competitive and growing steel sector to ensure a reliable supply of the additional raw materials needed to move away from fossil fuels.
“Europe cannot have a successful energy and raw materials strategy if its electricity and gas prices remain at today's levels for a long period without any changes. The long-term investment climate for all strategic metals production operations and projects in the EU risks being undermined, with more closures to follow next year as companies are not protected by their electricity price hedging in 2022. Any further loss of production in the EU will also increase global greenhouse gas emissions due to the replacement of supplies from more polluting regions,” the letter says.
Therefore, European non-ferrous metal producers are calling for emergency EU action to prevent irreversible damage from rising electricity and gas prices. Producers said the EU should take temporary measures to reduce the price of electricity offered to the market and improve the temporary structure of state aid.