EU Steel Organization Calls for Urgent Action to Rescue the Steel Industry

Forex - The European steel industry has called on the newly approved executive body of the European Union to take immediate action to prevent the sector’s irreversible decline.

The industry organization Eurofer stated that the bloc needs to agree on a robust plan for European steel addressing trade, the EU's carbon tax on imports, energy, and scrap, as part of broader proposals to help companies meet the EU's goal of achieving carbon neutrality by 2050.

Eurofer remarked, "The clock has already struck midnight."

Commission President Ursula von der Leyen has pledged to announce proposals dubbed the Clean Industry Pact during the first 100 days of the new Commission, which is expected to take office on December 1.

Eurofer noted that global overcapacity in steel is expected to reach 551 million tons in 2023, which is four times the EU’s annual steel production, and OECD projections indicate that there will be an additional 157 million tons of overcapacity by 2026.

EU steel production has decreased by 34 million tons over the past five years leading up to 2023, with capacity utilization dropping to 60%; imports account for 27% of the EU market.

The world's second-largest steel producer, ArcelorMittal, announced last Friday that it is postponing planned green investments due to policy uncertainties.