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Steel & Metal
- Romania -

Romania's Donalam Urges State Support Amid Low-Priced Imports

Donalam, a Romania-based unit of the Beltrame Group with steel mills in Calarasi and Targoviste, is calling on authorities for urgent state support to address what it describes as a crisis in the steel industry. The sector is facing its most challenging period in decades, with local producers struggling to survive due to massive imports of cheap steel from outside the EU, including Turkey, China, Egypt, and the Maghreb states. These imports surged by 27% in 2024, putting European producers at a disadvantage as they must comply with strict environmental standards and bear significantly higher production costs.

Donalam highlights that while other countries, such as the US and China, have implemented protective measures to safeguard their domestic industries, the European Union remains vulnerable due to a lack of comparable policies. The company warns that without urgent action, Europe risks becoming dependent on imports, which would harm its own producers.

Additionally, industrial consumers in Romania face the highest final electricity prices in the EU, creating a competitive handicap. In January, the final energy price paid by an industrial consumer in Romania was €139/MWh, compared to €71/MWh in Italy, €56/MWh in France, and €108/MWh in Bulgaria. The spot price of active energy in Romania has dramatically increased to approximately €200/MWh by mid-February, underscoring the need for a solid state aid scheme to protect the industry from soaring energy costs.

Despite the unfavorable market conditions, Donalam remains committed to its long-term strategic objectives for Romania, focusing on investments in equipment modernization and increased production efficiency. In 2024, the company invested nearly €20 million, demonstrating its dedication to transforming Donalam into a leading steel producer in Europe.

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