Donalam Urges for Immediate Action as Romania's Steel Industry Faces Collapse
Donalam, a member of the AFV Beltrame Group, one of Europe's prominent special steel and rebar producers, is sounding the alarm about the deepening crisis in the steel industry. Operating in Romania with steel plants in Călărași and Târgoviște, Donalam faces mounting challenges that threaten the survival of local producers. The European steel industry is experiencing its most difficult period in decades, largely due to massive imports of cheap steel from outside the EU, specifically from countries like Turkey, China, Egypt, and the Maghreb states. These imports surged by 27% in the past year, putting European manufacturers at a disadvantage.
Unlike the United States and China, which have enacted protective measures, such as the 25% tariffs imposed by Donald Trump on steel imports, the European Union has failed to adopt similar policies. This lack of protection leaves EU producers vulnerable to unfair competition from countries that can produce steel at much lower costs, without having to comply with strict environmental standards or face the higher production costs that European manufacturers do. If this trend continues, Europe risks becoming increasingly dependent on imports, undermining its domestic steel industry.
Unfair Competition and Energy Price Crisis in Romania
A further blow to Romania’s steel industry is the skyrocketing electricity prices, which put local steelmakers at a significant disadvantage. According to recent data, Romanian industrial consumers pay the highest final electricity prices in the EU. In January 2025, the price paid by industrial consumers in Romania was €139/MWh, significantly higher than in countries like Italy (€71/MWh), France (€56/MWh), and Bulgaria (€108/MWh). By mid-February, the spot price of electricity in Romania surged to approximately €200/MWh, exacerbating the cost pressures faced by local steel producers.
The situation is compounded by the fact that Romania is the only EU country without a state aid scheme to protect its steel industry from such high energy costs. Other countries in Europe, such as Italy, Germany, and France, have introduced measures to protect their domestic industries from rising energy prices. Donalam’s CEO, Carlo Beltrame, emphasized the urgent need for state support and a solid aid scheme to counteract the dramatic increase in energy costs.
The Dilemma of Scrap Metal Exports and Imports
One of the most absurd aspects of the situation, as pointed out by Donalam, is that Romania exports huge quantities of scrap metal to non-EU countries, only to later import finished steel products made from the same material at dumping prices. This paradox highlights the inefficiency and economic irrationality of the current system, which not only harms domestic producers but also exacerbates the country’s trade deficit.
Donalam's Commitment Amid Financial Losses
Despite facing severe financial losses, Donalam has demonstrated resilience by continuing to invest in its Romanian steel plants. In 2024, the company invested nearly €20 million, including €16 million at the Târgoviște plant (the only national producer of rebar steel) and €4 million in the Călărași special steel production unit. These investments are a testament to Donalam’s commitment to transforming itself into a leading steel producer in Europe. CEO Carlo Beltrame has stated, "Even though we are experiencing financial losses, we are not giving up on our planned investments. These are a clear testament to our commitment to transforming Donalam into a leading steel producer in Europe."
Need for Urgent State Support and Protection
The Romanian steel industry, along with Donalam, is calling for urgent state intervention to safeguard its future. Carlo Beltrame emphasized that the industry needs real, immediate state support to stay competitive, as seen in other European countries like Italy, Slovakia, Sweden, Czech Republic, France, Germany, and Switzerland. The company is advocating for a clear legislative framework to reduce energy costs, as well as a coherent industrial strategy that includes state aid schemes for investments. This will ensure the long-term sustainability and competitiveness of the Romanian steel industry.
In addition to support for energy costs, Donalam also urges the government to implement measures that will limit the access of dumping-priced steel to the Romanian market. Without these protective measures, Romania risks losing a strategic sector that supports tens of thousands of jobs and is integral to the country’s economic stability.
As the steel industry continues to face unprecedented challenges, the urgency for protective policies and state support is more critical than ever. With mounting imports and soaring energy prices, Donalam’s call for immediate action serves as a wake-up call to protect Romania’s steel industry from collapse.
