IMPACT OF RUSSIA-UKRAINE WAR ON EUROPEAN STEEL PRODUCTION

Abstract

In recent years, global and domestic market demands for quality steel were on the increase. Combined with the strict legislation of the European Union and its ambitious plan to reach carbon neutrality by 2050, this created pressure in the metallurgical sector, necessitating innovation and optimization of its current processes. However, the sector is currently struggling with a stagnant demand, international trade restrictions, and a pandemic which, along with the conflict between Russia and Ukraine, causes disruption in supply chains and affects downstream sectors. As of today, the steel industry is one of the three largest emitters and is therefore a good candidate for decarbonization. Although the industry needs to adapt to these new circumstances, it can also use them as a chance to ensure its competitiveness in the market in the long run. Steel is one of the basic pillars of today's society and as one of the most important engineering and building materials it is present in many aspects of our lives. Nevertheless, the industry must first cope with the environmental and economic pressure to reduce the amount of carbon dioxide production. All the more so as the energy and economic crisis caused by the war between Ukraine and Russia puts great pressure on the steel industry in Europe. These geopolitical events are also generating unprecedented challenges for Europe's society. As to the energy crisis, the concerns over security, affordability, and sustainability of energy sourcing have never been as acute as today, which highlights the vulnerability of Europe's industry and economy as a whole.