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WV Stahl: Competitive electricity prices will protect EAF producers and their operations

Germany’s steel industry is undertaking major investments and determined efforts to transition toward climate neutrality. However, high energy costs, global overcapacity (particularly from Asia), unfair import pressure, and historically low steel demand are threatening the country’s industrial base.

WV Stahl: Competitive electricity prices will protect EAF producers and their operations

The German Steel Federation (WV Stahl) underlined that medium-sized electric steel producers (the EAF sector) are particularly affected by this situation, stating:
“The EAF sector, which accounts for around 30% of Germany’s steel production, provides direct employment to approximately 32.000 people. Using steel scrap as its primary raw material, the sector plays a pioneering role in climate-neutral steelmaking and contributes to effectively closing material loops within the circular economy. The flexible and highly efficient electric production process is of critical importance for decarbonising industrial value chains in Germany.”

WV Stahl outlined the key challenges facing electric steel producers:

• Excessively high electricity costs

• Pressure to invest in low-emission production

• Decline in output

• Uncertain availability of secondary raw materials

• Increasing import pressure

The organisation sees the following steps as essential solutions:

• Ensuring competitive electricity prices

• Fair trade conditions and smooth border regulations

• Secure supply of steel scrap

• Strengthening domestic production and creating leading green markets

According to WV Stahl, these measures will protect both EAF producers and thousands of jobs in the sector, while enabling Germany to achieve its green steel objectives.

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