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Joint statement: energy-intensive industries urge swift action to tackle unprecedented energy crisis
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Brussels, 20 October 2021 - Ahead of the European Council meeting, industry calls for immediate support to address the skyrocketing energy prices which endanger the post pandemic recovery, coupled with structural measures securing the affordable low carbon energy required to meet the objectives of the EU Green Deal.
Gas and electricity prices have been rising exponentially in the last weeks and months, registering 4-to-5-time increases in comparison to last year. The main reasons for this situation are the imbalances in the gas market (which represents the primary short-term element), seasonal factors that have reduced renewable energy production, reduced nuclear energy production and increased carbon costs passed on in electricity prices.
Energy-intensive companies that are most exposed to such price spikes have been forced to react by curtailing and/or temporarily closing plants. Protracted high prices on the spot markets are also being reflected in the futures for the first semester of 2022. Such a trend represents a major threat for the full post pandemic recovery.
In addition, access to affordable low carbon energy sources represents a key condition for a competitive transition of energy intensive industries towards the climate neutrality target. Therefore, protractedly high and/or more volatile energy prices risk also jeopardising their transformation in the medium term.
The toolbox presented by the European Commission last week provides an overview of the measures that can be taken in the short term to support households and industry. We urge national authorities to exploit the full potential of the toolbox. However, it is clear that this unprecedented crisis requires additional, urgent initiatives.
In order to address the imbalances of the gas market, the EU should fully use its commercial and diplomatic pressure on the major gas suppliers. Furthermore, ad-hoc state aid rules are necessary to enable member states to react more prominently than currently allowed during periods of energy market stress. At the same time, a close monitoring mechanism of electricity and gas markets needs to be established to prevent further ‘outages’ during the upcoming winter.
While the ongoing crisis is linked to several conjunctural factors, its effects provide also important medium-term indications for the Fit for 55 Package and the overall climate and energy regulatory framework:
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Brussels, 05 June 2025 – The high level of uncertainty and major disruptions caused by the new U.S. tariffs have dealt a severe blow to recovery expectations in the steel market for 2025. Against the backdrop of broader economic resilience driven by services, industry remains weak, weighing on steel demand and consumption. Recovery is not expected before 2026, and only if positive developments emerge in the global geoeconomic outlook. According to EUROFER’s latest Economic and Steel Market Outlook, the recession in apparent steel consumption will continue in 2025 (-0.9%) for the fourth consecutive year (-1.1% in 2024), contrary to earlier forecasts of growth (+2.2%). A similar trend is expected for steel-using sectors, with another recession in 2025 (-0.5%, after -3.7% in 2024) instead of a projected recovery (+1.6%). Steel imports remained at historically high levels (27%) throughout 2024.
Second quarter 2025 report. Data up to, and including, fourth quarter 2024
Brussels, 4 June 2025 – With U.S. blanket tariffs now raised to 50%, the only way to avoid the further erosion of the European steel market and another blow to European steelmakers is the swift implementation of the “highly effective trade measure” promised by the European Commission in its Steel and Metals Action Plan. A negotiated solution between the EU and the U.S. is also vital to preserve EU steel exports to the U.S., warns the European Steel Association.