Speaking at the 2016 European Steel Day organized by the European Steel Association (EUROFER) in Brussels, Geert Van Poelvoorde, CEO of ArcelorMittal Europe Flat and also EUROFER president, stated that excess steelmaking capacity is one of the greatest challenges of the current time, and is presently in the order of 700 million mt and about 400 million mt of this is in China. Mr. Poelvoorde said that China must face the reality that its excess capacity is damaging the global industry’s prospects and is triggering the antidumping measures seen across the world.
According to the EUROFER president, European steel is globally competitive when faced with a fair market; however, in the presently distorted market, EUROFER calls on European policy makers to do more and to quickly and effectively defend their strategic steel industry. He also warned that the situation is very serious and that the steel industry needs commitment on overcapacity from all international governments, all of which have an interest in the sustainability and viability of their steel sectors.
Setting out EUROFER’s position on the use of trade defense instruments, Mr. Poelvoorde said trade defense is not about protectionism, but about the legitimate defense of an industry being severely impacted by unfair imports. He also emphasized that the EU is taking too long to introduce final measures, about 16 months from the trade case being initiated. Moreover, due to the lesser duty rule, the level of tariffs is considerably lower than in other markets, he added.