Steel market participants have raised concerns about the European Union’s new Clean Industry State Aid Framework (CISAF), warning that its effectiveness could be undermined by inconsistent implementation across member states. While the program is broadly welcomed for supporting decarbonization and clean tech, industry leaders caution that mid-sized players may struggle to access aid unless national governments actively mobilize support plans.
High energy costs remain a major obstacle. Electricity prices in Europe often exceed €100/MWh—far higher than in the US or China—making it difficult for European producers to compete, even with the Carbon Border Adjustment Mechanism in place. The transition to electric arc furnace and DRI-based steelmaking is also raising concerns about energy efficiency and affordability.
EUROMETAL, representing steel distributors and processors, is gathering data on rising imports of low-cost steel derivatives amid falling domestic production and consumption. The group urges policymakers to seize the current political momentum to create a level playing field for European steelmakers and processors.
