(с) Eurofer

Steelmakers and industrialists from other energy-intensive industries emphasize the impossibility of continuing production in Europe under current conditions

EUROFER, the European Steel Producers’ Association, called on the EU to urgently introduce general measures aimed at limiting gas prices. European steelmakers also insist that electricity prices should not be related to gas prices, they should be separated. An open letter posted on the organization’s website informs about it.

“Spot gas prices in the EU reached a maximum of €334/MWh two weeks ago. This is 15 times higher than the pre-crisis level, 10 times higher than prices in the US and significantly higher than prices in Asia. So it is clear that the relation with a normal market is lost. Beyond the current impact on citizens through inflation, destructive consequences on gas and electricity industrial users are inevitable,” the letter emphasizes.

As EUROFER notes, in recent weeks, many industrial enterprises have temporarily stopped or reduced production in Europe, and in the coming weeks there will be more of them.

“These massive plants curtailments will increase Europe’s dependency on third markets for strategic supply chains and will drastically increase the global carbon emissions,” the statement said.

The signatories point out that for many energy intensive industries there is currently no business case to continue production in Europe. Industrialists are also unable to decide on investments and plans for further development. Production cuts are already beginning to have a serious impact on production and distribution chains. This puts the European industrial base and the availability of basic products at risk.

Steel producers, together with industrialists from other energy-intensive industries, call on the EU to introduce the following pan-European measures:

  • limit the price of natural gas;
  • separate electricity prices from gas prices;
  • adjust the framework of the temporary crisis.

The joint letter of energy-intensive industries’ representatives is addressed to the head of the European Commission Ursula von der Leyen and the Czech Republic, which presides over the EU.

As GMK Center reported earlier, gas prices in Europe increased against the backdrop of Russia’s refusal to launch the gas pipeline. The rise in prices was short-lived, as high gas reserves in the EU made it possible to quickly overcome the panic on the market.