Salzgitter urges Berlin, Brussels to tackle high electricity costs (updated)

Salzgitter AG

Thu 12:31

Adds context and further CEO comments on EU measures and electricity prices from paragraph 2.
By Emanuele  Berro
Nov 12 (Reuters) - German steelmaker Salzgitter SZGG.DE warned on Thursday that European electricity prices were not sustainable for the energy-intensive industry in the long term, with CEO Gunnar Groebler calling on policymakers in Berlin and Brussels to do more to address what he described as a structural competitiveness problem.
"There's an urgent need to address those electricity price levels," Groebler said in a post-earnings call, adding that recent German support measures were just first steps and more work was needed.
European steelmakers are benefiting from stronger EU trade protections, including tighter import quotas and the gradual introduction of fees on high-emission goods entering the bloc, but they continue to grapple with sluggish demand and high energy prices.
Salzgitter has largely insulated itself from near-term power market volatility through power purchase agreements and forward hedges covering the rest of 2026 and much of 2027, leaving it relatively comfortable, Groebler said.
There is "a clear understanding by now that first movers should not be disadvantaged" by future EU carbon-market reforms, he said, while cautioning that linking free carbon allowances to investment requirements risked creating delays.
"What you don't want to have is a stop of any investment project in the steel industry," Groebler said.
Salzgitter raised its annual profit forecast in October, citing a strong contribution from its stake in copper smelter Aurubis NAFG.DE and the full acquisition of joint venture HKM from co-owners Vallourec and thyssenkrupp's steel division.

(Reporting by Emanuele Berro in Gdansk, editing by Milla Nissi-Prussak)
((Emanuele.Berro@thomsonreuters.com; +48 587696510))