Electric steel production on a scrap basis has fallen for the 18th month in succession. This means that production on this production route is even below the previous low from the crisis year 2009. According to the Wirtschaftsvereinigung Stahl, it is the high cost of electricity which is leading to the negative trend in the electricity-intensive process.
The electric arc furnace route has lost 12% in the year to date, falling below the 2009 level.
It is mainly medium-sized companies that would suffer from the non-competitive energy prices.
Kerstin Maria Rippel of the “Wirtschaftsvereinigung Stahl” appeals to politicians to take the initiative here:
Kerstin Maria Rippel (Source: WV Stahl)
“Our companies are in the midst of an unprecedented transformation and are dependent on affordable electricity. But electric steel production, of all sectors, which already produces steel with relatively low CO2 emissions, is coming under increasing pressure from high electricity costs. Our steel companies now need rapid, targeted relief from electricity costs.
Not permanently, but temporarily: until enough green electricity, sufficient grids and suitable backup power plants are available to ensure favorable prices in an intelligent market design. The basis of all transformation is therefore a massively accelerated expansion of renewables plus associated infrastructure.”
(Source: WV Stahl/2023)
