Donalam, a subsidiary of Italian group AFV Beltrame, has issued a stark warning about the dire state of Romania's steel industry, calling for immediate government intervention to protect local producers from unfair competition and rising production costs. 

The company highlights that steel imports from non-EU countries, including Turkey, China, Egypt, and Maghreb nations, surged by 27% in 2024, significantly impacting European producers who face stricter environmental regulations and higher operational costs. 

While the US and China protect their domestic steel industries, the EU remains vulnerable to massive dumping, exposing European producers to unfair competition, say Donalam representatives.

Meanwhile, Romania's industrial energy costs are the highest in the EU, with prices reaching EUR 139/MWh in January, compared to EUR 71/MWh in Italy and EUR 56/MWh in France. The situation worsened in February as spot prices soared to EUR 200/MWh. 

Donalam argues that Romania is the only EU country without state support for energy-intensive industries, putting its steel producers at a severe disadvantage. Additionally, the company criticizes Romania's practice of exporting scrap metal while importing finished steel at dumping prices.

Despite financial losses, Donalam said it invested EUR 20 million in 2024, including EUR 16 million in its Târgoviște plant, Romania's only rebar steel producer, and EUR 4 million in its Călărași facility. 

"We remain committed to making Donalam a leader in European steel production, but urgent government support is essential for the industry's survival," said Carlo Beltrame, CEO of Donalam. 

He urges the Romanian government to adopt measures similar to Italy, Germany, and France, including state aid for investments in steel production, energy price compensation for industrial consumers, and stricter trade policies to curb steel imports at unfairly low prices. 

Without intervention, Beltrame warns that Romania risks losing a strategic industry, jeopardizing thousands of jobs and economic stability.

andrei@romania-insider.com

(Photo source: the company)