The Critical Strategic Dialogue: A Turning Point for Europe’s Steel Industry
The European Steel Association (EUROFER) has welcomed the efforts of European Commission President Ursula von der Leyen to convene a Strategic Dialogue on Steel. Held today, this dialogue gathered representatives from key sectors across the steel value chain, including EUROFER and its members, laying the groundwork for industry-specific solutions aimed at tackling the pressing challenges facing the European steel sector. This initiative is seen as a vital step forward in the development of a Steel Action Plan, which is anticipated to be released by the European Commission later this month.
The steel industry, a vital pillar of Europe’s manufacturing sector, is grappling with several critical issues that threaten its sustainability. From the looming risks of global overcapacity to the push for decarbonization, the stakes for the European steel industry have never been higher. Axel Eggert, the Director General of EUROFER, emphasized the urgency of addressing these issues, stating, “The European steel industry faces unique, existential challenges that need to be addressed urgently.”
Four Key Priorities for the European Steel Industry
In today’s dialogue, EUROFER made clear its position on the need for immediate, robust action in four key priority areas that are crucial for securing the future of the industry:
1. Trade Protection and Safeguards
EUROFER advocates for tighter trade safeguards that better reflect current market realities. This includes the development of a more comprehensive tariffication regime to prevent the adverse effects of global steel overcapacity and to ensure the effective enforcement of EU trade defence instruments. These measures are aimed at curbing the influx of cheap steel imports that could further destabilize the European market, especially as the EU steel safeguards are set to expire in June 2026.
2. Carbon Border Adjustment Mechanism (CBAM)
Another major concern for EUROFER is the need to ensure that the Carbon Border Adjustment Mechanism (CBAM) is both watertight and effective in its implementation. The CBAM is a critical tool in preventing carbon leakage and resource shuffling, where industries may relocate production to countries with laxer environmental regulations, undermining Europe’s decarbonization goals. EUROFER stresses that while the mechanism must safeguard the competitiveness of EU steel exports, it must also prevent the relocation of manufacturing value chains outside of the EU.
3. Affordable and Clean Energy
With energy prices continuing to rise, EUROFER is calling for affordable clean energy to be made available to consumers and industries alike. The association believes that providing access to renewable and low-carbon electricity will be crucial for the competitiveness of the European steel sector. This will allow steel producers to transition towards greener production methods, such as electric arc furnaces and other low-carbon technologies, without risking the viability of their businesses.
4. Ferrous Scrap Retention
Ferrous scrap – a key raw material for steel production – is becoming increasingly scarce. EUROFER has called for strategic policies to ensure that this valuable resource remains within Europe. This would support Europe’s circular economy goals, assist in the decarbonization of industry, and contribute to energy security. As scrap steel plays a vital role in reducing the carbon footprint of steelmaking, retaining this resource within Europe will be essential for the sustainability and future competitiveness of the European steel sector.
The Immediate Challenges and Rising Tensions
The steel sector is currently experiencing considerable strain due to global trade imbalances and rising competition, particularly from the U.S., which has imposed steel tariffs. With U.S. tariffs already weighing heavily on European producers, the EU faces increasing pressure to safeguard its domestic steel industry from further external shocks. Jobs in steel-producing regions are being lost, and decarbonization investments have been paused. As the EU safeguards are set to expire in 2026, the steel sector faces a critical window to secure future market access and ensure its survival.
As Axel Eggert notes, the time for half-measures has passed: “Across Europe, jobs and steel capacity are being lost, and decarbonization investments are paused, while U.S. tariffs are looming.” This highlights the urgency of developing policies that protect both the economic and strategic interests of Europe’s steel industry.
A Call to EU Policymakers
Building on the positive momentum from today’s Strategic Dialogue, EUROFER is calling on EU policymakers to rise to the occasion and prioritize the future of the steel industry. The European steel sector is not only a critical part of Europe’s industrial base, but also plays a vital role in ensuring the strategic autonomy of the EU in the global manufacturing landscape. EUROFER has urged European policymakers to take decisive action to protect this strategic sector, which is foundational to Europe's economic future and the broader European project.
Key Takeaways:
• EUROFER supports the European Commission’s initiative to hold a Strategic Dialogue on Steel, marking a significant step towards addressing the challenges facing the European steel industry.
• The Steel Action Plan is expected to be published by the European Commission later in March 2025, focusing on key solutions for the sector.
• EUROFER has outlined four priority areas that require immediate attention:
o Trade safeguards to protect against global overcapacity and cheap imports.
o A strong and effective Carbon Border Adjustment Mechanism (CBAM) to prevent carbon leakage and maintain competitiveness.
o Affordable clean energy to support decarbonization efforts and industry competitiveness.
o Retaining ferrous scrap within Europe to support the circular economy and energy security.
• The EU steel industry faces serious challenges, including job losses, paused decarbonization investments, and the threat of U.S. tariffs.
• EUROFER calls on EU policymakers to take immediate, decisive actions to safeguard the steel industry as a strategic sector critical to Europe’s economic and strategic autonomy.
