In recent years, Romanian steelmakers have faced the significant challenges felt by all EU industries, grappling with rising energy costs, increased competition from non-EU producers, and fluctuating demand, all of which have put immense pressure on the industry’s operations and competitiveness.
Romania is one of the last remaining countries in Central and Eastern Europe (CEE) with primary steel production, and steelmaking contributes significantly to the national economy and employment.
The competitiveness of the steel industry is at risk due to high and volatile energy prices, uncertainty around future hydrogen and steel scrap availabilities, constrained capacity to secure financing, and the lack of a green steel market.
In the long-term, maintaining competitiveness necessarily implies a transition from conventional to low-carbon steelmaking, requiring affordable low-carbon energy, the transformation of production processes and substantial investments.
With significant renewable energy potential, an important automotive sector, and booming infrastructure development, Romania is well-positioned to advance a transition to competitive low-carbon steel.
However, it suffers from policy and regulatory bottlenecks, leading to underutilisation of EU funding, high energy prices, and low investment certainty due to lagging national planning for hydrogen infrastructure and supply chains for high-quality steel scrap.
In the context of major pressure to compete in a low-carbon world, as well as the policy push of the Clean Industrial Deal and forthcoming Steel and Metals Action Plan, Romania must urgently implement key concrete actions to maintain its steel industry.
These include ramping up renewable electricity deployment, developing hydrogen infrastructure, labelling steel scrap as a critical resource, proactively absorbing and efficiently disbursing EU funding, setting up novel funding and derisking instruments and leveraging private funding, and creating robust lead markets in the construction, automotive, and shipbuilding sectors.
Mara Bălașa, EPG Associate
Mara is an Associate within the Clean Economy programme of the EPG. With a background in economics and political science (BSc University of Warwick), applied economic analysis, and data analysis (MSc Stockholm School of Economics), she is currently researching the green transition with a focus on industrial policy. Mara has been a PhD Fellow at the Center for Statecraft and Strategic Communication, Stockholm School of Economics, since 2022. During her master’s degree, she was the recipient of the UniCredit Foundation Masterscholarship for top students.
Previously, Mara was a market operations analyst at the European Central Bank and a research executive in public affairs in Brussels, focusing on energy and transport. She has also briefly worked in public administration at the Ministry of Economy in Romania and at the Permanent Representation of Romania to the European Union.
Contact:mara.balasa@epg-thinktank.org
Sabina Strîmbovschi, EPG Senior Researcher
Sabina works as a Senior Researcher in industrial decarbonisation within the Clean Economy Programme of EPG.
She holds a PhD in Political Science (International Relations) from the National University of Political Studies and Public Administration (SNSPA, Bucharest).
Before joining EPG, Sabina worked for one of the largest business support organizations in Romania, where she coordinated the activities of the European and international organizations office.
Over the last few years, she has been involved in two volunteer organizations. She served as an affiliated expert and board member at one of the most important think-tanks on European Affairs in Romania – the Center of European Expertise (Europuls). She is also a member of Future Energy Leaders Romania – the youth program of the Romanian National Committee of the World Energy Council.