Czech and Slovak steel producers and processors association Ocelářská unie has issued a strong warning about the deteriorating situation in the European steel market, emphasizing that Germany’s new subsidized electricity tariff, due to take effect in January 2026, and which will keep energy prices for businesses at half the Czech level, will significantly undermine the competitiveness of Czech steelmakers.
According to the association, the European steel market is “crumbling” under the weight of high costs, weak demand and surging imports - and, unless Prague acts, Czech industry will fall behind.
Under Berlin’s plan, the German government will introduce an industrial electricity price of €50/MWh. This support, financed through €6.5 billion in state funds, will apply to energy-intensive industries including steel and smelting.
In contrast, Czech industrial electricity prices are around €100/MWh. Třinecké železárny, the only domestic producer of crude steel in the country, alone consumes about 1 TWh per year, so the price gap could cost the company CZK 3-4 billion annually. Roman Heide, CEO of Třinecké železárny, warned that, without similar national measures, long-term steel production in the Czech Republic may no longer be viable.
Call for urgent national action
The association is calling on the Czech government to adopt immediate measures to protect industrial competitiveness, including potential energy-cost support, before the German tariff enters into force. Without national action, the association warns the Czech Republic could face a long-term decline in steel production, job losses and further erosion of its industrial base.
