Energy prices and protection from unfair imports remain a problem for the region's steel mills.
. Steel market participants and industry observers warn that the new EU state aid framework program aimed at supporting the Clean Industry Agreement (CISAF) may be undermined by uneven implementation at the national level, Fastmarkets reports[/url].
Alexander Julius, President of EUROMETAL, noted that the association welcomes the new system as a step in the right direction, especially in the context of protecting Europe's environmentally friendly industrial base.
"The new flexibility is useful, but its effect will be uneven if member states do not actively mobilize support plans, and in many cases this remains uncertain, especially for medium–sized market participants in the steel value chain," he said.
EUROMETAL, which represents European distributors of steel, pipes and metal products, has repeatedly highlighted the important issue of high energy consumption in the European steel industry for all participants in the supply chain and the creation of value for metal products.
Access to affordable renewable energy sources is a challenge for European steel producers seeking to decarbonize. The Fastmarkets research group estimates that between 2025 and 2030, 40 million to 50 million tons of new environmentally friendly steel production capacity using electric arc furnaces or DRI/EAF alone will be commissioned in the region. Currently, about 45% of steel in Europe is produced by electric arc melting.
The transition to DRI/EAF technology raises concerns, especially regarding energy efficiency. Representatives of steel mills point out that a sufficient amount of renewable energy is needed at affordable prices. At the same time, the cost of electricity in Europe remains much higher than in many other countries of the world. Industrial tariffs often exceed 100 euros/MWh (for comparison, costs in the USA and China often approach 30-50 euros/MWh).
Sources among manufacturers warn that in such conditions, even taking into account the costs of CBAM, imports may still be more competitive than European steel.
. At the same time, as Alexander Julius announced at a conference dedicated to the 75th anniversary of EUROMETAL, EUROMETAL began collecting information from EU associations, national federations and steel consumers on the import of cheap steel derivatives into the bloc. The Association analyzes the growth of supplies from abroad in comparison with the steady decline in steel consumption in Europe and domestic production, Kallanish writes[url=https://eurometal.net/alexander-julius-industry-must-utilise-political-problem-solving-momentum/].
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