The European steel industry is facing a severe crisis, with thousands of job cuts and billions of euros in decarbonisation projects being suspended. This situation has been exacerbated by a flood of cheap foreign steel entering the EU market, particularly from China, South Asia, and other steel-producing regions, severely damaging the competitiveness of EU steelmakers. In response to this urgent crisis, IndustriAll European Trade Union and the European Steel Association have jointly called for an immediate meeting with European Commission President Ursula von der Leyen and Executive Vice-President Frans Timmermans to discuss potential solutions and propose an urgent Steel Action Plan to address the sector’s survival.
The steel industry in the EU was already grappling with the ongoing energy crisis and rising raw material costs, but the situation has worsened due to the influx of inexpensive steel imports. In particular, following the economic downturn in China, it is estimated that 100 million metric tons of Chinese steel are being dumped at artificially low prices into global markets, including the EU. This situation is compounded by a global steel overcapacity of 560 million metric tons, placing additional pressure on EU steel producers. The sudden influx of steel from regions such as South Asia, the Middle East, India, and Japan has caused a significant drop in global steel prices, making it nearly impossible for European steelmakers to compete. As a result, the future of the EU steel sector, which is vital to the region’s economy and the transition to a green future, is under threat.
The existing EU trade defence instruments, which were designed to protect European industries from unfair trade practices, are proving insufficient in tackling the scale of the steel overcapacity issue. While these instruments are still vital, they need to be reinforced and supplemented with new, emergency measures. IndustriAll and EUROFER have called for a comprehensive EU trade initiative that includes measures such as import tariffication to curb the flood of cheap imports. Import tariffs, while adhering to World Trade Organization rules, would allow the EU to better protect its domestic steel industry from market-distorting practices by foreign producers. This would be a vital step in stabilising the market and ensuring that European steelmakers can remain competitive while continuing to invest in environmentally sustainable production processes.
In light of the gravity of the situation, the two organisations are requesting the European Commission to organise a high-level “European Steel Summit” early next year. The proposed summit would bring together key stakeholders, including steel social partners, representatives from EU Member States, and high-level officials from the EU institutions, to address the current crisis and discuss strategic solutions. The summit would also serve as a platform for discussing the EU’s planned Steel and Metals Action Plan, which aims to tackle energy price challenges, secure access to raw materials, and drive investments in green steel technologies. This event would provide an opportunity for leaders of both trade unions and steel companies to present their perspectives on the state of the industry and offer actionable recommendations.
One of the main points to be discussed at the summit would be the development of a comprehensive Just Transition for the steel industry. As part of the EU’s broader Green Deal and Clean Industrial Deal, the transition to green steel production is vital for meeting Europe’s carbon reduction goals. However, the ongoing crisis is putting these ambitious plans at risk. The summit would focus on how to continue decarbonising the steel industry while ensuring that the sector remains economically viable. Key measures would include supporting the roll-out of technologies like hydrogen-based steelmaking and ensuring that carbon border adjustment mechanisms are effectively implemented.
The crisis also raises the issue of energy prices, which have been a significant concern for the EU steel industry. High energy costs have put European steel producers at a competitive disadvantage compared to countries with lower energy prices, such as those in Asia and the Middle East. With energy prices rising in Europe due to geopolitical instability, steelmakers are facing increasing operational costs. The summit would aim to identify measures to reduce energy costs for steelmakers, thereby improving their competitiveness on the global stage and ensuring that the EU can meet its sustainability goals.
Finally, the urgent meeting and summit would allow for a comprehensive dialogue between all stakeholders to address the immediate crisis and ensure the long-term survival of the steel sector. With thousands of jobs at stake and the future of green steel investments in jeopardy, the summit would be a critical step in formulating a strategy to safeguard the industry. The proposed Steel Action Plan aims not only to address the immediate issues caused by dumped steel but also to provide a framework for the green transformation of the European steel sector. As Judith Kirton-Darling, General Secretary of IndustriAll, and Axel Eggert, Director General of EUROFER, stated, joint cooperation is essential to overcome this crisis and protect thousands of jobs across Europe.
The time to act is now. The European steel industry needs immediate support from the EU Commission to ensure that it can survive the current crisis and thrive in the green transition. The Steel Summit could be the catalyst for the necessary reforms to protect European workers and industries, while ensuring that the steel sector plays a key role in Europe’s sustainable future.
