Tuesday, December 10, 2013

THE EU PLANS TO REANIMATE EUROPEAN STEEL INDUSTRY

The EU plans to reanimate EUROPEAN STEEL INDUSTRY
THE EU PLANS TO REANIMATE EUROPEAN STEEL INDUSTRY

The European Commission and EU industry ministers called on the world#39;s largest steel company ArcelorMittal to delay plans to close steelmaking capacity up until June had adopted a program of resuscitation of the steel industry in Europe. This was announced by the European Commissioner for Industry, Antonio Tajani.

Recall that on 12 February the European Commission held a roundtable discussion with 13 ministers in charge of the industrial sector, the EU, member states, as well as representatives of industry associations. The initiators of the event were the ministers of Belgium, France and Luxembourg.

During the event, the roundtable participants agreed on a number of recommendations relating to trade, natural resources, climate change and energy policy, in order to resuscitation of the European steel industry, numbering 360 thousand workers.

According to the steel association Eurofer, last year#39;s steel consumption in the EU fell by 9.7%. In addition, this year the demand, including the replenishment of stocks may decline by 0.7%, but in 2014 will increase by 3%. However, the consumption will reach 146 million tons, which is 27% below the pre-crisis peak in 2007.

At the same time, the demand for steel outside the EU in developing economies stronger, but representatives of the European steel industry have pointed out that they have to leave the EU due to tighter regulation and rising costs.

Industry is facing rising costs for energy (unlike the U.S., where it is used cheap shale gas), its representatives say that the environmental ambitions of the EU simply lead to the fact that the manufacturers will pollute elsewhere.

Thus, the Commission has aimed to 2020 to reduce CO2 emissions by 20% compared to 1990 levels. By mid-century, as expected, the policy in terms of ecology will only become tougher.

According to Antonio Tajani, if steelmakers are moving outside the EU, then this is a serious problem for the workers, as well as new challenges for the wrestlers to climate change.

At the same time, the European commissioner on climate issues Connie Hedegaard said that the policy of reducing CO2 emissions entails minimal costs for steelmakers. Moreover, a number of metallurgical groups make millions of euros for emissions trading CO2.

The head of Eurofer and Austrian steelmakers Voestalpine noted that European steel producers have to pay for natural gas is 4 times more than in the United States, the electricity overpaid by about 40%. In addition, a significant cost item is labor remuneration fund and the reduction of emissions permits CO2.

`If, within five years the cost structure will not change radically, I predict that by 2030, steel production in the EU will decrease by half #39;, - he said.

All the details about the situation in the EU steel sector, read the material `Metallurgical decline of Europe #39;, published in the magazine` printovoy Metal Supply and Sales#39;.