The European Steel Association (EUROFER), which represents European steel producers, has said it welcomes the EU recovery plan proposed by the European Commission to support a climate-neutral, digitalised and resilient EU economy after the coronavirus outbreak.
The EUROFER said that it has proposed a Green Deal on Steel and matching support measures for the steel industry and its value chains such as automotive, construction and mechanical engineering.
EUROFER director general Axel Eggert stated, “The European steel industry could be the spearhead of a decarbonised EU industry, providing green and perfectly circular steel to the EU’s and global manufacturing value chains.” He went on to say that this will require significant investment in new technologies from 2021 to 2030 and beyond. Mr. Eggert also stated that, in consequence of using green energy and matching input materials, the steel sector will have higher capital and operational costs and this should be offset by a well-coordinated combination of financing support schemes and regulatory measures.
According to EUROFER, the positive effects of the Recovery Plan will only take place in the medium term because the main steel value chains, such as the automotive, construction and mechanical engineering sectors, are struggling with economic difficulties and the EU steel industry is in a precarious position due to the halting of EU steelmaking facilities and the collapse of steel prices in the EU market. Accordingly, EUROFER reiterated the need to immediately implement emergency measures.
Eggert also said, “The tariff free import quota needs to be reduced significantly. This would help in the immediate term, whilst also providing a means of supporting the industry as we move into the recovery phase.”