Steel industry warns EU high electricity prices threaten Europe’s economic competitiveness

The European Steel Association (EUROFER) has backed a call to action adopted by European companies and industries in Antwerp, which includes a demand on the EU to take urgent action to bring electricity prices down as a condition for Europe’s industrial drive, competitiveness and economic resilience.

Following the publishing of the call be shared just before the EU leaders’ retreat on 12 February, EUROFER stressed that persistently high and volatile electricity prices, further inflated by high taxes and carbon costs, have become one of the largest obstacles to investment, electrification and decarbonisation in Europe’s steel industry.

EUROFER underlined that restoring electricity prices closer to pre-2021 levels of €44 /MWh, before the energy crisis hit, is essential if Europe is serious about strengthening its steel industry and safeguarding industrial value chains.

Henrik Adam, president of EUROFER and executive chairman of Tata Steel Netherlands Holding BV, said, “Steel is at the heart of Europe’s industrial ambition, but it is being held back by sky high electricity prices and costs. If the EU wants investment in low-carbon steel to happen in Europe, it must deliver total electricity costs closer to €50/MWh – across all member states. Bringing power prices down is now the litmus test of Europe’s economic and climate credibility.”

At the same time, EUROFER stressed the need for short-term support measures fit-for-purpose to keep steel production and investment in Europe while structural reforms are implemented to decouple electricity prices from fossil fuel prices.

Axel Eggert, director-general of EUROFER, added, “Steelmakers are taking decisions now. Without effective relief from high electricity prices, investment will move elsewhere and capacity will be lost. Keeping steel production in Europe is not just an industrial issue – it is essential for Europe’s economic security and strategic autonomy.”