On April 22, the European Confederation of Iron and Steel Industries (EUROFER) released a statement saying that poorly implemented climate policy, raw materials prices and protectionism by third countries jeopardize the steel value chain in Europe.
"We have now reached a decisive point as to whether steel production has a future in Europe," said EUROFER's director general Gordon Moffat "If steelmaking is forced to migrate from Europe, others will follow in its stream, such as huge parts of the automotive and machinery sectors, leading to a massive loss in European jobs and expertise. Keeping industrial activity in Europe is essential not only in itself but also for all the business services that industry requires, from R&D to logistics and marketing, which would also be de-located with our industry."
"If the EU wants to achieve its objectives for ‘smart, sustainable and inclusive growth', as set out in its Europe 2020 strategy, it must take the right decisions now," said Moffat. EUROFER called on the European Commission to ensure that implementation of the EU Emissions Trading Directive does not increase costs for the most CO2 efficient steelmakers: the best performers must receive 100 percent of their emissions allocations free in order to stay competitive in the global market, and in the electric arc furnace sector steelmakers must be compensated for increases in electricity prices caused by the Emission Trading System.
EUROFER also reiterated its appeal to the European authorities to investigate the pricing behavior of the major iron ore suppliers, claiming that their demands for price increases of around 100 percent are not justified by market fundamentals or the current global economic situation. The confederation also demanded the prevention of the proposed joint venture between the iron ore suppliers BHP Billiton and Rio Tinto.