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Energy Efficiency Directive
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The European industry keeps facing high energy prices that affects its cost-competitiveness towards main competitors in third countries. The issue of high energy costs, in particular for energy-intensive industries exposed to global competition such as steel, must be addressed through a coherent EU energy and climate policy that ensures affordable energy prices, industrial competitiveness on the EU’s internal market as well as on international markets, security of supply and reliable achievement of the EU climate and environmental objectives.
The regulatory framework shall address and minimize the impact of regulatory costs related to decarbonisation and the promotion of energy efficiency on the competitiveness of energy intensive-industries and promote innovative low carbon solutions that can contribute to the energy and climate targets, taking exposure to international competition fully into account.
Due to the high share of energy costs in total production costs, energy efficiency is a key element for preserving the competitiveness of European steel companies. This is why they operate processes very close to the thermodynamical limits in terms of energy consumption. Deeper emissions reductions are only possible with the deployment and roll out of breakthrough technologies that require, among others, access to abundant and competitive low carbon energy sources, including hydrogen and electricity.
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Brussels, 11 September 2025 – The lack of a solution for steel in the EU-U.S. trade negotiations, the ongoing unpredictability of the global geoeconomic situation, and persistently weak demand against an ever-growing global steel overcapacity are squeezing the European steel market. In 2025, the outlook points to stagnation, with potential recovery only in 2026 — conditional on improvements in the global economy and an easing of trade tensions. According to EUROFER’s latest Economic and Steel Market Outlook, another recession both in apparent steel consumption (-0.2%, revised upwards from -0.9%) and in steel-using sectors (-0.7%, revised downwards from -0.5%) is confirmed for 2025. Growth prospects are now delayed at least to 2026, with projections of a rebound for both apparent steel consumption (+3.1%) and steel-using sectors (+1.8%). However, steel imports continue to hold historically high market shares (25%) in 2025.
Third quarter 2025 report. Data up to, and including, first quarter 2025
Brussels, 10 September 2025 – Reacting to today’s State of the Union Address delivered by Commission President Ursula von der Leyen, Axel Eggert, Director General of the European Steel Association (EUROFER) said: