The steel industry in the European Union, important for the economy as a whole, faces various challenges. These are inter alia volatile prices for relevant input factors, uncertainties concerning the regulation of CO2-emissions and market shocks caused by the recently introduced additional import duties in the US, which is an important sales market. We examine primary and secondary effects of these challenges on the steel industry and stress impacts on European and global level. Particularly, we analyse the impacts of changes in competitiveness on energy demand and CO2-emissions taking transport of raw materials and steel into consideration. By applying information on Human Development Index values (reflecting aspects of life expectancy, education, and per capita income) we show that relocating energy-intensive industries from Europe may not only increase energy demand and global CO2- emissions, but may also affect developing countries.
Keywords Steel industry; competitiveness; transport cost; energy efficiency; Human Development Index