The European steel industry will destroy itself if it does not close unnecessary power - Eurofer

European steel companies run the risk of destroying the metallurgical industry of the region if they do not close the plants, trying to reduce excess capacity and stop the drop in steel prices, the Eurofer’s metallurgical association said, Bloomberg reports.

"There is a huge danger to the entire industry," the group President Wolfgang Eder told reporters. "Plants must be closed. Companies destroy their business, intending to maintain all available metallurgical capacities."

Revenues in the steel industry in Europe fell after a reduction in demand. Metallurgists are fighting to maintain unnecessary capacities, and the costs at this time continue to grow. Europe needs to close the production of steel in the amount of 40-50 million tons per year in order to reach an acceptable level of 200 million tons over the next three years, says Eder as the main executive director of Voestalpine AG.

The European metallurgical industry lost 19 percent of the cost of its shares in 2013, becoming the worst industry group from the monitoring Bloomberg. Arselormital, the largest steel manufacturer, said last month that the demand for metal rolling in Europe would continue its fall.

Politicians and trade unions should respect the decision of the company's owners when it comes to closing the factories, Eder emphasized. “The intervention from the outside will only make it worse,” he added, referring to the pressure on Arselormital in France and Belgium after a decision on the closure of factories in Flooral and liege.