Brussels, 27 November 2024 – The European steel industry is at a critical juncture, facing irreversible decline unless the EU and Member States take immediate action to secure its future and green transition. Despite repeated warnings from the sector, the EU leadership and governments have yet to implement decisive measures to preserve manufacturing and allow green investments across Europe. Recent massive production cuts and closure announcements by European steelmakers show that time has run out. A robust European Steel Action Plan under an EU Clean Industrial Deal cannot wait or manufacturing value chains across Europe will simply vanish, warns the European Steel Association.

"The clock has already struck midnight. How many more plant closures, job losses, and stalled decarbonisation projects will it take before the EU and Member States wake up? Europe’s de-industrialisation is accelerating, with steel, automotive, renewables, and batteries all on the brink. Without immediate action, Europe’s manufacturing base will disappear. We urge the new European Commission and EU governments to stop this bloodshed and adopt swift measures on trade, CBAM, energy and steel scrap, while working on a structural solution to preserve our industry’s competitiveness”, said Axel Eggert, Director General of the European Steel Association (EUROFER).

Key facts highlight the severity of the crisis:

• Global steel overcapacity reached 551 million tonnes in 2023 - four times the EU's annual steel production - and continues to grow. The OECD projects an additional 157 million tonnes of carbon-intensive capacity by 2026.
• EU steel production has plummeted by 34 million tonnes since 2018, falling to just 126 million tonnes in 2023. Imports now account for 27% of the EU market, further undermining domestic production.
• Nearly 100,000 steel jobs have been lost in the past 15 years, with more cuts looming.
• Capacity utilisation in the EU has sunk to an unsustainable 60%.

EUROFER calls for an ambitious European Steel Action Plan [1] to address the crisis. Critical measures include:

• Assertive enforcement of the EU trade defence instruments, and a more robust tariffication regime to stop the destruction of the EU steel market by the spill-over impact of global steel excess capacity.

• A CBAM that works in practice, preventing circumvention or resource shuffling and preserving EU steel exports.
• Affordable clean energy by passing the benefits of renewable and low-carbon electricity to consumers.
• Retaining steel scrap in Europe for the circular economy, decarbonisation and energy security.

“This isn’t just about steel; it’s about all the value chains - from automotive to renewables - that depend on it. It’s about Europe’s resilience, prosperity, and climate leadership. Without urgent EU intervention, we face total dependence on China, the US, and other global competitors where industries thrive under favourable conditions. We stand ready to work with the new Commission to prevent this collapse. We need impactful measures now, instead of incremental improvements that fail to address root challenges such as global steel overcapacity and high energy prices", concluded Mr. Eggert.