With another fall in electric steel production based on scrap for the 18th month in a row, production on this production route is even below the previous low point from the crisis year of 2009. According to the Steel Association, it is the high electricity costs that are leading to the negative trend of the electricity-intensive process.
So far this year, the arc furnace route has lost 12%, falling below the 2009 level. Medium-sized companies in particular would suffer from the uncompetitive energy prices.
Kerstin Maria Rippel from the Steel Association appeals to politicians to take initiative here:
“Our companies are in the midst of an unprecedented transformation and rely on affordable electricity. But electrical steel production, which already produces relatively low-CO2 steel, is increasingly in trouble due to high electricity costs. Our steel companies now need targeted relief from electricity costs quickly. Not permanently, but temporarily: Until there is enough green electricity, sufficient networks and suitable backup power plants to ensure low prices in an intelligent market design. The basis of all transformation is therefore a massively accelerated expansion of renewables plus the associated infrastructure.”