EU rules on state aid for energy offer only ‘limited protection’, Eurofer says

European regulations on energy and environmental state aid offer “only limited protection” from increases in electricity prices that hurt steel producers, Eurofer said on Wednesday April 9.

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

The European Commission released its new guidelines earlier today, a day after it emerged that it had agreed with the German government on renewable energy tax reforms.

Eurofer, the European steel association, criticised the commission for not exempting all steelmaking processes from renewable energy taxes, and for requiring that the exempted companies pay a 15% minimum share of taxes or 4% of their gross value added.

“The 15% minimum contribution to national renewables subsidies will still lead to a further substantial increase in energy costs for many energy-intensive companies in the EU – costs which competitors do not have to bear,” Eurofer director general Gordon Moffat said.

The steel industry body also complained that final decisions on the amount of tax discounts lie with member states, as this means that the minimum contribution required from high energy-using industries could cause distortions within the European market.

“We cannot operate an industry that is producing globally traded products such as steel where you have differentials in cost that are so horrendous,” Moffat said.

What to read next
Any bolstering effect on US ferrous scrap exports from the up-month in February’s domestic trade will be tempered in the immediate aftermath of two earthquakes in Turkey — the country’s largest importing region — on Monday, February 6
Steel trading and production have come to a halt in the eastern Turkish region of Iskenderun following a devastating earthquake that hit the region on Monday February 6 and put mills in the area under force majeure, sources told Fastmarkets on Tuesday
A 120-day closure of four Illinois dams scheduled for 2023 will disrupt barge shipments and have potentially both negative and positive impacts on scrap and finished steel products from Canada to Texas
Market participants are cautiously optimistic about a rebound in iron ore concentrate premiums, with steelmakers around the world set to ramp-up production in line with an anticipated increase in demand for steel products, Fastmarkets understands
General Motors (GM) is investing $650 million to develop the Thacker Pass mine in Nevada, the largest known source of lithium in the US and the third largest in the world
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.