Planning how the EU’s steel sector can remain competitive and go cleaner despite Europe’s high energy prices, low demand, and stiff competition will start with a “strategic dialogue” with the industry next week, the European Commission said today.

Steelmakers, raw materials suppliers, and customers should help decide the actions for a “step-change” in the sector’s competitiveness and safeguard “value-creation and high-quality jobs in the EU,” the commission wrote in a concept note.

Consultations beginning on 4 March will result in a “Steel and Metals Action Plan” this spring.

Some 2.5 million jobs and €80 billion of Europe’s gross domestic product are linked to the steel industry. But the sector is in trouble due to a number of factors, including what steel-makers say is foreign overproduction that has led to prices of European producers being undercut on their home ground.

A business case for steel

In its concept note, the commission promised that its Clean Industrial Deal, due to be released tomorrow, will “create a solid business case for clean steel production.”

It mentioned the possible introduction of non-price criteria for low-carbon steel in public procurement and a “voluntary low-carbon label” incentivising private buyers.

A financing mechanism for industrial decarbonization, minimising investment risks and simpler state aid rules could help accelerate investments, the commission indicated.

Decisive measures needed

The EU steel lobby EUROFER is “very much looking forward” to the first meeting, its chief Axel Eggert said.

“The Strategic Dialogue and the Steel Action Plan will be crucial moments to identify concrete and timely actions that are sector-specific and can be swiftly deployed,” Eggert said in a statement to Euractiv.

“Decisive measures on trade, [the EU carbon border tariff known as] CBAM and energy are essential in the immediate term to safeguard European steelmaking,” he said.

Difficult situation

Earlier this month, the US announced a new 25% duty steel imports, a move that could “have a major negative effect” for European steelmakers and “exacerbate the risk of excess production being redirected to the EU,” the commission said in the dialogue’s concept note.

The EU executive will seek  feedback on “how best to work together to respond quickly and effectively to unfair and unjustified trading practices, considering the ripple effects of global over-capacities, and on what long-term measures could best replace current safeguard measures.”

France and Italy step in

Before the EU steel strategic dialogue starts, however, a group of European countries led by France and Italy are set to put forward their proposals this week.

On Thursday, French industry and energy minister Marc Ferracci and and Italian enterprises minister Adolfo Urso have invited the representatives of nine other EU countries, the European Commission, and the Polish presidency of the EU to meet in Paris and declare their views on the steel industry’s future.

[EPD]

Source: Euractiv.com