The Czech and Slovak Association of Steel Producers and Processors Ocelářská unie issued a serious warning about the deterioration of the situation in the European steel market, stressing that the new subsidized electricity tariff in Germany, which is due to enter into force in January 2026, will keep energy prices for enterprises at a level half that of the Czech Republic, significantly It will undermine the competitiveness of Czech metallurgists.
According to the association, the European steel market is "collapsing" under the weight of high costs, weak demand and growing imports – and if Prague does not take action, the Czech industry will lag behind.
According to Berlin's plan, the German government will set an industrial electricity price of 50 euros per MWh. This support, funded by public funds in the amount of 6.5 billion euros, will extend to energy-intensive industries, including the steel and smelting industries.
In contrast, industrial electricity prices in the Czech Republic are about 100 euros/MWh. Trzynecke Ironworks, the only domestic steel producer in the country, consumes about 1 TWh per year, so the price difference can cost the company 3-4 billion CZK per year. Roman Heide, CEO of Třinecké železárny, warned that without similar national measures, long-term steel production in the Czech Republic may not be effective.
A call for urgent national action
The Association calls on the Czech government to take immediate measures to protect industrial competitiveness, including potential support for energy costs, before the German tariff takes effect. The Association warns that without action at the national level, the Czech Republic could face a long-term decline in steel production, job losses and further erosion of its industrial base.
Steelorbis.com
