SteelOrbis spoke with Piotr Slyusar, President of the Polish Metallurgical Industrial and Commercial Chamber, about the latest developments in the EU steel industry.
How would you describe the current trends in steel demand in the EU steel market in the main sectors (construction, automotive, mechanical engineering, etc.)?
The marked economic downturn in Europe has a negative impact on the demand for steel and, consequently, on the demand for ferrous scrap. The low demand for steel is due to imports of steel products from non-EU countries, including imports of steel products and semi-finished products from Ukraine, which causes the greatest damage to the Polish economy.
How do high energy prices affect output, investment, and competitiveness?
Unfortunately, Poland has some of the highest electricity prices in the EU, which leads to lower profitability and very often to the inability to achieve profitability in industries such as steel production or scrap recycling.
Do you foresee further consolidation or restructuring of the European steel industry?
If the process of restricting trade in ferrous scrap continues, the only ferrous scrap processing enterprises in Poland will remain enterprises owned by steel mills.
How do geopolitical changes affect trade routes?
The restrictions imposed under the WSR will affect the routes of trade in ferrous scrap and significantly weaken the scrap industry, which is responsible for achieving recycling and recovery levels in many key sectors in terms of generating the country's GDP.
What are your expectations regarding steel demand and prices in the short and medium term?
Following the developments in the EU, industry representatives are concerned about the months-long decline in the cost of scrap metal and the quantitative reduction in demand for ferrous scrap in Europe.
Are you optimistic or cautious about the competitiveness of the EU steel sector in the medium term?
The competitiveness of the steel and scrap metal processing sectors is driven by significant costs and problems with expensive electricity, especially in Poland.
How do you assess the latest EU statement on the policy of protective measures?
The EU must ensure not only the support and protection of the steel industry, but also the recycling sector. Without scrap metal production, the steel industry will not be able to meet the requirements and expectations of the EU industry.
Are these trade measures effective?
