In a crucial move to stabilize the EU steel market, the European Union has approved the extension of steel safeguard measures until June 2026, following substantial import penetration levels surpassing pre-safeguard thresholds. Axel Eggert, Director General of EUROFER, applauds the decision amid mounting global overcapacity challenges, which now exceed four times the EU's steel demand.
Mr. Eggert underscores the urgency of addressing structural issues contributing to excessive imports, which pose significant risks to Europe's clean tech industries amidst ongoing decarbonization efforts. The safeguard extension aims to mitigate adverse impacts on the European steel sector, crucial for maintaining competitive balance and supporting sustainable economic growth.
The European Commission's decision reflects concerns over a substantial rise in global steel overcapacity, increasing by nearly 50 million metric tons from 2019 to 2023, significantly outstripping global demand growth. Projections indicate a further influx of 158 million metric tons of new capacity by 2026, exacerbating pressures on global steel markets and reinforcing the need for robust protective measures.
Import surges into the EU have predominantly originated from regions with significant capacity expansions, notably Southeast Asia, the Middle East, and North Africa, driven by state-subsidized investments and export-oriented strategies. Chinese steel exports, in particular, have redirected global flows towards the EU, intensifying market pressures and underscoring the need for coordinated international responses.
Looking ahead, EUROFER urges European institutions to prioritize addressing global overcapacity as a strategic imperative. As the EU prepares for a new economic cycle, proactive measures are essential to safeguarding domestic industries, fostering innovation, and advancing sustainable industrial practices aligned with EU policy objectives.
