EUROFER Applauds Franco-Italian Ministerial Conference: A Critical Dialogue for the Future of European Steel
On February 27, 2025, the European Steel Association expressed strong support for the Ministerial Conference on the Future of the European Steel Industry, convened in Paris by the French Minister for Industry and Energy, Marc Ferracci, and Italian Minister for Enterprises and Made in Italy, Adolfo Urso. This initiative came just a day after the European Commission introduced the Clean Industrial Deal and a few days before the Strategic Dialogue on Steel meeting. It was an opportune moment to align the political direction for Europe’s steel sector, which is facing significant challenges and requires decisive action from both the European Union and national governments.
The steel industry, a cornerstone of Europe’s industrial base, faces a turbulent future, with rising global competition, unfair trade practices, and cost pressures. At the conference, Axel Eggert, Director General of EUROFER, emphasized that the EU steel industry needs more than just recognition of these challenges, it requires structural solutions to safeguard its future and enable its transition to a low-carbon economy.
EUROFER’s Four Key Areas for Immediate Action
EUROFER has long advocated for focused, urgent interventions in the following critical areas that impact the competitiveness, decarbonisation, and sustainability of the European steel sector. The Ministerial Conference provided a platform to further these priorities:
1. Trade: Strengthening Safeguards and Combatting Global Overcapacity
The global steel industry is currently facing a massive overcapacity, with a surplus of 550 million metric tons and an additional 150 million metric tons expected by the following year. This overcapacity, fueled by state-subsidized production in countries like China, is undermining European steelmakers’ ability to compete fairly.
EUROFER has called for stronger trade defenses against dumping and unfair competition, including tighter safeguard measures that better reflect current market conditions. The safeguard measures, which will expire in June 2026, need to be revised and extended to provide continuous protection.
Further, EUROFER advocates for the establishment of a more robust tariff system that can better address the spillover effects of global steel overcapacity, thus ensuring a level playing field for European manufacturers. This is critical to prevent European steelmakers from being outcompeted by cheap imports.
2. CBAM: Closing Loopholes to Prevent Carbon Leakage
The Carbon Border Adjustment Mechanism (CBAM) is a key part of Europe’s green transition strategy, but EUROFER has raised concerns about its current effectiveness. As it stands, steel producers from non-EU countries can sell lower-carbon steel in Europe at cheaper prices, bypassing the EU’s stringent carbon regulations. At the same time, European steel producers face higher carbon costs when exporting their products outside the EU.
EUROFER calls for the CBAM to be strengthened to close existing loopholes such as resource shuffling, where steel that is more carbon-intensive is produced for non-EU markets while exporting lower-carbon steel to Europe. There is also a need for sector-specific adjustments in the CBAM framework to avoid carbon leakage and ensure that EU steel exports remain competitive.
The current delay in CBAM revisions until 2026 is seen as a significant gap in the legislative process. EUROFER stresses the need for immediate changes to make the mechanism watertight, thus supporting European steelmakers in their transition to low-carbon production while maintaining their global competitiveness.
3. Energy: Affordable Clean Energy for Industry Competitiveness
Energy prices are a major challenge for European steelmakers, especially when compared to the significantly lower prices in global competitors such as China and the United States. The steel industry is an energy-intensive sector, with energy costs making up a substantial portion of production expenses.
EUROFER highlights that EU wholesale energy prices remain 2-4 times higher than those in countries like the U.S. and China, putting European steelmakers at a significant disadvantage. The association calls for structural reforms in the EU electricity market design to decouple electricity prices from fossil fuel prices, which currently drive the energy cost crisis.
Additionally, EUROFER urges the European Commission to provide clear guidance on transitional energy price relief for industries like steel, which are essential to Europe’s economic future. Long-term power purchase agreements, though helpful, have yet to deliver meaningful benefits. Thus, the Commission needs to consider alternative, immediate measures to ensure that European steelmakers can remain competitive while also pursuing decarbonisation goals.
4. Ferrous Scrap: Retaining Critical Resources for Circular Economy and Energy Security
Ferrous scrap is a crucial raw material for the EU steel industry, playing a vital role in reducing CO₂ emissions and energy consumption through recycling. However, Europe is the world’s largest exporter of ferrous scrap, often sending it to countries with lower environmental standards, which undermines the EU’s efforts to maintain sustainable steel production within its borders.
EUROFER calls for targeted measures to retain ferrous scrap within the EU to support the circular economy and reduce reliance on virgin raw materials. This will not only strengthen the EU’s industrial base but also ensure that the steel sector can meet its decarbonisation goals. The Circular Economy Act should formally recognize ferrous scrap as a strategic secondary raw material and provide mechanisms to keep it within the EU’s borders.
The Strategic Importance of the Steel Industry for Europe’s Sovereignty
The steel industry is integral not only to Europe’s industrial backbone but also to its economic and geopolitical sovereignty. Steel is a fundamental material used in sectors like defense, transportation, and renewable energy infrastructure. As Europe’s security landscape continues to evolve and global trade dynamics shift, the importance of a strong, competitive steel sector cannot be overstated.
At a time when Europe faces geopolitical instability, the steel industry plays a crucial role in ensuring that the EU can maintain its strategic autonomy and reduce its dependence on foreign imports, especially for critical sectors such as defense and energy infrastructure.
EUROFER’s Axel Eggert underscored that steel is no longer just an industrial material; it has become a symbol of Europe’s sovereignty and resilience in an increasingly uncertain world. Addressing the sector’s challenges is therefore not just about economic growth but about securing Europe’s future.
A Call for EU Member State Support
EUROFER has called on all EU Member States to back the conclusions of the Ministerial Conference and to adopt immediate actions on the four key issues highlighted above. The association stresses that structural reforms must be implemented without delay to ensure the future competitiveness of Europe’s steel industry. These measures, combined with other EU initiatives like the Strategic Dialogue on Steel and the Steel Action Plan, will be critical to ensuring that the steel sector can navigate its current challenges and continue to thrive in a competitive global market.
Key Takeaways:
• EUROFER supports the Franco-Italian Ministerial Conference for addressing the future of the European steel industry.
• The EU steel sector faces major challenges, including global overcapacity, high energy prices, CBAM loopholes, and unfair trade practices.
• Immediate actions are needed in four key areas: trade, CBAM, energy pricing, and retention of ferrous scrap.
• Decisive measures are essential to tackle carbon leakage, maintain EU steel exports, and ensure competitive energy pricing.
• The steel industry is vital for Europe’s geopolitical and economic sovereignty, and its future is tied to Europe’s industrial independence and resilience.
• EU Member States must support EUROFER’s recommendations and act swiftly to secure the future of the European steel sector.
