German steel flooding Polish market with lower prices
Polish steel producers hoped that the introduction of the EU’s Carbon Border Adjustment Mechanism (CBAM) would boost sales and prices after months of stagnation. While CBAM has reduced imports from outside the EU, especially Ukraine, domestic producers now face strong competition from German suppliers offering significantly cheaper steel. The main reason is energy costs: German steelmakers benefit from extensive government support, including sharp reductions in grid fees and large decarbonization subsidies, while Polish companies face some of the highest electricity charges in Europe.
Although the Polish government is working on support mechanisms linked to decarbonization investments, the industry warns that without rapid relief, many producers may not survive long enough to benefit from future programs.
(pb.pl)