Plugged In: the energy news podcast Is the EU failing its heavy industry?
Sep 12, 2025
Paul Voss, Director General at European Aluminium, and Axel Eggert, Director General of EUROFER, tackle the urgent issues facing the EU's heavy industry. They discuss the critical impact of a $750 billion US-EU trade deal and the shock of 50% tariffs on steel and aluminium. As they highlight the challenges posed by Chinese overcapacity and rising energy prices, Voss and Eggert advocate for urgent policy reforms to enhance competitiveness. Their candid insights reflect the precarious future of these vital industries within Europe.
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Aluminium Under Multiple Structural Pressures
- European aluminium faces structural challenges: Chinese overcapacity, US tariffs, sluggish domestic demand, and high energy costs.
- Paul Voss says these combined pressures make the sector's outlook very challenging.
Steel Market Faces Severe Decline
- EU steel is under acute pressure from global overcapacity, rising energy costs, and falling demand.
- Axel Eggert warns the sector lost around €30bn a year and now risks plant idling and layoffs.
Tariffs Distort Global Scrap Markets
- US tariffs have distorted scrap markets, raising US scrap prices and creating export arbitrage to non-EU destinations.
- Paul Voss says this scrap price shift worsens Europe's ability to secure recycled feedstock.