EU steel producers call for urgent action on energy prices

SEATTLE (Scrap Monster):  Steel producers have called on the European Commission to take action in connection with high wholesale electricity prices undermining the decarbonization process and the sustainability of production in the EU.

Steel buyers across the EU have told MEPs that the rejection of imports due to CBAM emissions taxes is currently the main driving force behind rising electricity prices. domestic prices. However, rising electricity prices were one of the factors cited by European steel producers, insisting on higher selling prices this month.

Eurofer supported the call of a coalition of 1,300 European companies and industrial associations to adopt a package of emergency measures in the field of industrial policy ahead of a visiting of EU leaders in Olden—Bizen, in eastern Belgium, on February 12. Along with measures to reduce the costs of EU industrial sectors for electricity and carbon dioxide emissions, the European Commission should conclude trade agreements that will improve access to foreign markets and facilitate the purchase of low-emission products produced in Europe.

The Antwerp Appeal for Alden Bizen had arrived less than two weeks earlier. on the publication of the Commission's Law on Accelerating Industrial Production, which is scheduled for February 25. Preliminary versions of the Law show that it will formalize the plans originally outlined in the European Commission's clean industry agreement. It aims to create "leading sales markets" for low-carbon steel producers in the EU, and also provides for a "Made in Europe" procurement policy for projects financed by the state and the private sector. Plans to introduce a voluntary emission labeling system for steel and tighten controls on scrap metal exports from the EU are also expected to be outlined, as the bloc reduces carbon dioxide emissions by increasing EDF-based steel production.

ArcelorMittal said that the effects of the EU's introduction of taxes on CBAM emissions had already influenced its decision to reduce production. invest in decarbonization. On February 11, the steel mill announced that it would begin developing two million tons per year of EDP at its facility in Dunkirk, northern France. The confirmation of the project, which was first announced in May 2024, represents an investment of 1.3 billion euros.

Geert van Polvoorde, executive director of ArcelorMittal Europe, said that combining CBAM with the EU's proposed tariff quota system, which is due to be implemented on July 1, would "create a more level playing field for European manufacturers."

Courtesy: www.metallurgprom.com