EUROFER warns that expensive electricity is slowing down investment and decarbonization and threatening steel production

The European Steel Association EUROFER supported a joint appeal from the industry, adopted in Antwerp on the eve of the EU leaders’ meeting on February 12. The industry is demanding urgent measures to reduce the cost of electricity, which determines the competitiveness of European industry and economic stability.

The association stressed that consistently high and volatile electricity prices, further increased by taxes and carbon costs, have become one of the main obstacles to investment, electrification, and decarbonization of the steel industry. According to industry estimates, returning tariffs to a level close to the pre-crisis 2021 level – approximately €44/MWh – is critical to preserving production chains.

«Steel is the foundation of Europe’s industrial ambitions, but it is held back by excessively high electricity prices. If the EU wants investment in low-carbon steel to take place in Europe, it must ensure that the total cost of electricity is around €50/MWh in all member states,» said Henrik Adam, President of EUROFER and CEO of Tata Steel Netherlands Holding BV.

In the short term, the industry is asking for production support while structural reforms are underway to decouple electricity prices from the cost of fossil fuels.

«Steelmakers are making decisions now. Without effective relief from high prices, investments will go to other regions and capacity will be lost,» added Axel Eggert, CEO of EUROFER.

The meeting in Antwerp was also attended by the heads of ArcelorMittal Europe and Arvedi Group, along with more than 500 industry representatives and EU leaders.

According to EUROFER forecasts, apparent steel consumption in the EU will grow by 3% in 2026. As noted, this will happen provided that industrial conditions improve and global tensions ease, but these factors remain difficult to predict at this time.