Seven EU countries publish a common statement on the steel sector

The statement stated that the sector provides direct employment for 310 thousand people and has an annual turnover of EUR 130 billion, and emphasized that especially the plants operating with blast furnace-basic oxygen furnace (BF-BOF) production method are under serious pressure.

Steel production in Europe reached a historic low of 126 million tons in 2023. According to the statement, there is a risk of losing about 150 thousand jobs in 25 plants in 14 EU countries by 2030. Increasing import pressure, high energy costs and uncertainties in decarbonization investments threaten the future of the sector. Prices are under pressure due to the excess global steel capacity, while industrial electricity prices in Europe are 2-3 times higher than in the US. Carbon costs increased in the EU, while it was announced that free allocations are gradually being removed. New environmental regulations that will enter into force in 2026 may create additional costs for steel producers.

According to the declaration, trade defense mechanisms should be activated and anti-dumping and anti-subsidy measures should be increased. Designing a new steel protection mechanism for post-2026, increasing incentives for decarbonization projects and reducing energy costs were emphasized.  The EU called for strengthening trade policies, supporting the green transformation and developing a sustainable financing model for the industry in order to maintain the competitiveness of the EU steel industry.

EU identified the measures to be taken to support the steel industry in three phases

In the short term, effective use of trade defense tools should be ensured, anti-dumping and anti-subsidy investigations should be stepped up and rules of origin should be applied to steel imports.

In the medium term, a new post-2026 steel safeguard mechanism should be designed, policies should be developed to boost domestic steel demand, and source shifting risks should be prevented through Carbon Border Adjustment Mechanism (CBAM).

In the long term, scrap recycling research should be encouraged, strict controls on scrap exports should be introduced and green public procurement should be supported.