Czech steel sector urges government action as Germany introduces subsidized electricity tariff

Tuesday, 25 November 2025 14:29:21 (GMT+3)   |   Istanbul

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.

DamlaTükenmez
Damla Tükenmez
Editor

I graduated from the Department of English Language and Literature at Kocaeli University. Since 2020, I have been producing content focused on the steel industry. At SteelOrbis, I write industry news on a wide range of topics, including EU and UK trade measures, regulatory changes, quota utilization, and the statements and views of organizations representing the Turkish steel sector.


Similar articles

Třinecké Železárny seeks stronger support for decarbonization amid EAF investment uncertainty

06 Aug | Steel News

Czech Republic’s Moravia Steel warns of rising costs as free EU ETS allowances decline

11 Feb | Steel News

Czech steel industry warns of collapse from high energy costs, calls for urgent action

19 Sep | Steel News

Mittal not expecting pre-crisis demand levels in developed world before 2015

16 Mar | Steel News

USWC bulk scrap prices to docks stable, Houston drops

12 Aug | Scrap & Raw Materials

US issues final results of CVD sunset review on PC strand from China

12 Aug | Steel News

Brazilian pig iron exports increased in July as shipments to the US rose 55 percent

12 Aug | Steel News

Investment in Canadian building construction decreases 0.3 percent in May 2026

12 Aug | Steel News

Ex-Asia billet fluctuates in limited range with traders less aggressive, loses competitiveness

12 Aug | Longs and Billet

Russia still refrains from HRC exports amid higher margins locally, logistical and low-price issues overseas

12 Aug | Flats and Slab