EUROFER calls for urgent trade actions to address Global Steel Overcapacity

The European Steel Association (EUROFER) is calling on countries involved in the Global Forum on Steel Excess Capacity (GFSEC) to take immediate and decisive trade measures in response to rising global steel overcapacity.

Newly released data from GFSEC indicate that this issue continues to worsen, putting thousands of jobs at risk and distorting the global steel market, especially in Europe.

EUROFER’s Director General, Axel Eggert, emphasized that market forces alone cannot resolve the overcapacity problem. He urged GFSEC countries to adopt a comprehensive strategy that includes unilateral trade actions, particularly targeting nations that have withdrawn from the forum or continue to export excess steel. “The open market approach only benefits countries with unchecked overcapacity. We need actions that cover the full range of steel products and address all affected countries,” said Eggert.

At today’s GFSEC Ministerial Meeting, it was projected that global steel overcapacity could reach 630 million metric tonnes by 2026, five times the EU’s crude steel production in 2023. This surplus threatens economies with open markets, particularly in the EU, and undermines efforts toward decarbonization and innovation, which are critical for the green transition.

Eggert stressed that European steelmakers are heavily investing in decarbonization, but these efforts are at risk due to the flood of underpriced, carbon-intensive steel entering the market. “We need emergency measures to address this issue and find a structural solution to its root causes,” he concluded.

2024.10.08 EUROFER Press Release GFSEC