Insight
EU steel keels under pressure of soaring energy prices
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
European steelmakers idle almost 30 Million Metric Tonnes of steel capacity to rebalance the market amid a climate of soaring energy prices, high imports, and weak domestic demand. At its core, falling steel prices have squeezed margins and severely reduced competitiveness of the European steel industry. We forecast 2022 crude steel production to be 145Mt for the EU27+UK, down 9%, a substantial downgrade from our Q2 Long Term Outlook.
Table of contents
-
European steelmakers idle 30 Mt of capacity in response to unsustainable energy costs and weak demand
- A double whammy of high costs and low prices is squeezing margins and reducing competitiveness
- Surge in energy prices has increased the cash cost for steelmakers with EAF mills being more exposed
- Raw materials - demand destruction limits imports
Tables and charts
This report includes the following images and tables:
-
EU steel capacity idling, October 2022Power and gas price surge on short supply; upcoming winter casts further worries
-
Share of electricity and gas in cash cost set to rise in 2022; impact higher on EAF units than BOF owing to higher share in cost structureAverage margins by steel making routesDouble whammy impact on margins
What's included
This report contains:
Other reports you may be interested in
Insight
Complex refiners under pressure; carbon cost impact on European refiners
What does the phase-out of carbon free carbon allowances mean for refinery margins and supply risk for Europe’s complex refiners?
$900
Insight
Value-in-use iron ore costs Q3 2025
Q3 2025 iron ore value-in-use adjusted costs are up 2.2% compared to last quarter, and margins remain at 40% in Q3 2025.
$5,000
Insight
The impact of 50% tariffs on US steel
US 50% steel tariffs redraw trade flows. We assess the impact on demand, production, and top exporters. No partner is immune.
$1,050
