The industry is experiencing its worst period since the financial and economic crisis of 2009
The European Steel Association (EUROFER) called for urgent action to save steel industry in Europe. This is stated in an open letter to the heads of state and government of the EU member states.
The signatories of the appeal are the management of the association – CEO Tata Steel Netherland, Arvedi, ArcelorMittal Europe, Aperam, Riva Stahl, Voestalpine Steel Division and Salzgitter AG. The letter calls on the European Council to consider the challenges facing the industry during an informal meeting of trade ministers on October 17-18.
As noted, steelmakers strive to contribute to the achievement of the EU’s ambitious goals for decarbonization and the creation of quality jobs.
“However, we are at a crossroads: our industry is going through its worst period since the financial and economic crisis of 2009. This is due to the impact of global steel overcapacity and unfair trade, which amplifies the impact of low steel demand and high energy prices in the EU. Without taking urgent measures, it will be difficult in most EU member states to maintain a sustainable and stable steel industry capable of investing in ambitious decarbonization projects until 2030 and beyond,» the letter says.
According to the association, steel production in the EU has decreased by 30% since 2008, to 126 million tons in 2023. Restructuring and capacity reduction processes over the past 15 years have led to the loss of almost 100,000 jobs. Capacity utilization has recently fallen to an unsustainable level of about 60%. This trend will continue in 2024.
The steel industry action plan as part of the Clean Industrial Deal should include both emergency measures and a structural solution to address the impact of global overcapacity and unfair trade on the EU steel market, the letter says.
European steelmakers called on the heads of state and government of EU countries to support and adopt as a matter of urgency:
- Measures to strengthen and ensure the decisive application of EU trade defense instruments to stop unfair trade practices and circumvention, as well as a structural solution to comprehensively end the spillover effect of overcapacity. Current steel safeguards should be replaced by a more robust tariff regime;
- Improving CBAM measures to prevent circumvention, reallocation of resources and delocalization in processing and sales, as well as to preserve steel exports from the EU.
- Actions throughout the EU to reduce energy costs for energy-intensive industries, and ensure access to raw materials while preserving scrap within the block,
- Creating leading markets to drive demand for green steel in Europe.
As reported earlier, the Clean Industry Agreement, including rapid and radical measures in the EU’s industrial, energy and trade policy, is the last chance to ensure European prosperity and protect European industry from cheap imports, EUROFER warned.
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