The European steel industry continues to lobby the European Union to address an ongoing crisis, described as the sector’s worst since the 2009 financial crisis. On October 23, the European Parliament held a plenary debate focusing on this critical situation, highlighting challenges including global steel overcapacity, China’s low-cost exports, and EU policy weaknesses.
Steel associations cited the industry’s struggles, noting that global overcapacity reached 551 million tons last year—four times the EU’s annual steel output. With China producing nearly half the world’s steel, flooding global markets with cheap steel, European producers face declining revenues, job losses, and environmental concerns. MEP Juan Ignacio Zoido Alvarez highlighted China’s rapid growth in steel production, up by 600% over 20 years, with further increases anticipated by 2026.
Further issues included high energy prices, weaknesses in the Carbon Border Adjustment Mechanism (CBAM), and ineffective trade defense. European Commissioner Helena Dalli noted that Europe, responsible for just 7% of global production, faces declining output and a steel trade deficit. She urged investments in green steel projects to regain global competitiveness and stressed the need for affordable energy and protection from cheap imports.
Steelmakers and EU leaders discussed an action plan, proposing reduced imports, stronger trade safeguards, and enhanced energy supply stability. President Ursula von der Leyen announced a new Clean Industrial Deal aimed at supporting industries like steel in their green transitions.
Meanwhile, the Ukrainian steel industry struggles amidst war-related challenges, including plant destruction, export losses, and high energy costs. CBAM poses additional hurdles for Ukraine, which exports 93% of its steel to the EU. Ukrainian officials urge relaxed CBAM terms, citing potential export losses up to $4.6 billion by 2030.
Industry experts argue that harmonized EU and Ukrainian policies are essential to shield European steel from low-cost imports and sustain critical industry sectors across the region.
