The European Steel Association (EUROFER) has endorsed a joint industry call to action adopted in Antwerp, urging the EU to take immediate action to reduce electricity prices as a prerequisite for Europe’s industrial competitiveness and economic resilience. In a declaration made in Antwerp on February 11 by 900 companies and 391 associations and unions, industry leaders called on the EU to take bold action to bring energy and carbon costs down, stating that the costs of energy in Europe are simply too high to compete and are not only driven by commodity prices but also by regulatory charges.
According to EUROFER, persistently high and volatile electricity prices, compounded by elevated taxes and carbon costs, have become a major barrier to investment, electrification and decarbonization in Europe’s steel sector.
Steel sector demands return to pre-crisis power price levels
EUROFER stated that restoring electricity prices closer to pre-2021 levels of €44/MWh, before the energy crisis, is essential to reinforce Europe’s steel industry and protect industrial value chains.
Henrik Adam, president of EUROFER and executive chairman of Tata Steel Netherlands, said that steel remains central to Europe’s industrial strategy but is being constrained by “sky high electricity prices and costs”. He stressed that, if the EU wants low-carbon steel investments to remain in Europe, total electricity costs must be brought closer to €50/MWh across all member states, adding that lowering power prices has become a critical test of Europe’s economic and climate credibility.
Industry calls for short-term relief and structural reform
In addition to structural reforms aimed at decoupling electricity prices from fossil fuel price dynamics, EUROFER emphasized the need for targeted short-term support measures to maintain steel production and investment in Europe during the transition period.
Axel Eggert, director general of EUROFER, warned that steel producers are making investment decisions now. Without effective relief from high electricity costs, capacity and investment could shift outside Europe.
According to EUROFER, maintaining steel production within the EU is not only an industrial priority but also a key component of Europe’s economic security and strategic autonomy.
