Donalam SRL, Romania-based subsidiary of Italian steelmaker AFV Beltrame Group, has warned of the crisis both in the EU and Romanian steel industries, which are experiencing their most difficult period in decades.
Accordingly, over the past year, low-cost steel imports from countries outside the EU such as Turkey, China, Egypt and the Maghreb countries increased by 27 percent, putting pressure on European steelmakers that have to comply with strict environmental standards and endure significantly higher costs. While the EU is standing by against the collapse of its steel industry due to unfair competition and massive dumping, other countries such as the US are taking measures to safeguard its steelmakers. As an example, the US recently introduced 25 percent additional tariffs on all steel imports without exceptions or exemptions. Therefore, Europe is at risk of becoming dependent on imports from outside the bloc, the statement from Donalam said.
Meanwhile, industries in Romania have to pay the highest electricity prices in the EU. By mid-February this year, spot electricity prices in Romania increased to about €200/MWh, demonstrating the need for urgent state aid to protect the industry. Moreover, the war in Ukraine and global instability have resulted in a significant increase in raw material costs, impacting production. Also, Romania exports a significant amount of scrap to non-EU countries every year, which, later returns as imported finished steel products at dumped prices.
“Even though we are experiencing financial losses, we are not giving up on our planned investments. What we want to emphasize is that heavy industry needs real and immediate state support and protection to remain competitive. We need a clear legislative framework, measures to reduce energy costs, and a coherent industrial strategy, including state aid schemes for investments - just like in other European countries. Additionally, solutions must be found to limit the access of dumping-priced steel products to the Romanian market. Without these concrete measures, Romania risks losing a strategic sector, jeopardizing tens of thousands of jobs and economic stability,” Carlo Beltrame, CEO of Donalam, commented