Romanian steelmaker Donalam sounds the alarm over industry crisis

Due to the influx of cheap imports and high electricity prices, European manufacturers are on the verge of survival

Donalam, a Romanian company that is part of the Beltrame group and has steel mills in Keleres and Tirgoviste, has warned the authorities about the crisis in the steel industry. According to the company, the situation is the most difficult in recent decades and threatens the existence of local producers, Kallanish reports.

“Massive imports of cheap steel from outside the EU – Turkey, China, Egypt and the Maghreb countries – increased by 27% in 2024. This is strangling European producers, who are forced to comply with strict environmental regulations and incur significantly higher production costs,” Donalam said.

The company emphasizes that while the United States and China are taking measures to protect their producers, the European Union is inactive. For example, the 25% duty on steel imports imposed by the Donald Trump administration has become an effective tool to protect the national industry. In the EU, however, the absence of similar measures poses a threat to local companies.

In addition, Romanian industrial consumers pay the highest electricity tariffs in Europe. In January 2025, the price for enterprises was €139/MWh, while in Italy it was €71, in France it was €56, and in Bulgaria it was capped at €108. By mid-February, prices in Romania had risen to €200/MWh, making it necessary to introduce a state support program.

Donalam also emphasizes the absurdity of the situation when Romania exports large volumes of scrapto non-EU countries and then has to import finished products at dumping prices.

Despite the challenging situation, Donalam remains committed to its long-term goals in Romania, investing nearly €20 million in equipment modernization and production efficiency in 2024 alone.

“These investments demonstrate our commitment to making Donalam a leading steel producer in Europe. However, the heavy industry needs real and immediate support from the government. We need to find solutions to limit steel imports at dumping prices and ensure the competitiveness of local producers,” said Carlo Beltrame, CEO of Donalam.

As GMK Center reported earlier, steel production in the European Union increased by 2.6% in 2024 compared to 2023, to 129.5 million tons. Global steel production for the year amounted to 1.84 billion tons, down 0.9% year-on-year.