Polish steel sector demands reduction of electricity prices to €50/MWh

The industry calls on the government and the EU to make quick decisions, warning of the risk of losing competitiveness

The Polish steel industry is calling on the government to move from declarations to real action and reduce the cost of electricity for energy-intensive industries to €50/MWh. Representatives of the sector emphasize that the high price of electricity remains a key barrier to the recovery of the industry, while other European countries are already implementing support mechanisms. This was discussed during the New Industry Forum in Katowice, according to WNP.

Mirosław Motyka, president of the Chamber of Metallurgical Industry and Trade, stressed that the industry has developed solutions but needs them to be implemented immediately. He welcomed the European Commission’s proposals to restrict duty-free steel imports and introduce the “smelted and cast” principle, but stressed that without competitive energy prices, Poland would lose out to European producers.

The discussion on supporting the steel industry is intensifying against the backdrop of the successful revival of Huta Częstochowa, which, after coming under the control of Węglokoks at the beginning of the year, has produced 213,000 tons of steel and plans to reach 500,000 tons in 2025. However, market players emphasize the importance of equal rules for state-owned and private enterprises.

Among the strategic challenges facing the industry is the future of blast furnace technology. ArcelorMittal Poland says that the large furnace in Dąbrowa Górnicza, which will be modernized in 2023, will operate for at least 15 years. The company is considering the introduction of carbon capture and storage (CCS) systems as a possible alternative to a rapid transition to electric arc furnaces.

A separate topic of discussion was the need to protect coke and chemical producers from cheap imports from Asia and the growing requirements for scrap metal processing. The industry emphasizes that the future of low-carbon steel depends on effective cooperation between recyclers and metallurgists.

All conference participants concluded that without rapid anti-crisis policies, Poland risks losing its position in the European steel market, where competitors are already acting decisively.

As a reminder, in October, the average monthly wholesale price of electricity for the next day in Poland was €97.96/MWh. Overall, prices in the EU ranged from €51.4/MWh to €114.6/MWh during the month. The lowest level was observed in Sweden, and the highest in Romania.

Steel production in the country in September this year decreased by 16.2% compared to the previous month, and by 11.3% year-on-year, to 524 thousand tons. In January-September, Polish metallurgists produced 5.65 million tons of steel, which is 5.2% more year-on-year. The restart of Huta Częstochowa contributed to the recovery of production since the beginning of the year.