The European Steel Association (EUROFER) has stated that global excess capacity, which distorts the global steel market and threaten thousands of jobs across Europe, must be curbed through immediate trade actions that are comprehensive, addressing the full range of products and countries.
According to the latest data from the Global Forum on Steel Excess Capacity (GFSEC), global steel excess capacity is projected to reach 630 million mt by 2026, equivalent to five times the EU steel crude production in 2023. Given steel’s critical role in employment, innovation and clean technologies essential to the green transition, this surplus of carbon-intensive, underpriced steel not only distorts markets but also undermines competitiveness and decarbonization efforts, EUROFER noted.
“Persisting in keeping markets open only benefits those countries that continue to export excess steel, either in reaction to disruptive import surges or in denial of their own overcapacity. European steelmakers are investing billions of euros in decarbonization, yet these efforts are at risk of being nullified just by the additional excess capacity projected to come online by 2026. For every million mt of lost EU production capacity, an equivalent volume of imports floods our market. We need emergency actions to contain the spillover effects of global excess capacity and a structural solution to address its root causes,” Axel Eggert, director general of EUROFER, said.