EUROFER and ACEA demand a realistic path to EU industrial sustainability

On the eve of the European Council meeting on October 23, representatives of the EU steel (EUROFER) and automotive (ACEA) industries issued a joint statement calling on the bloc’s leaders to take a realistic and pragmatic approach to industrial transformation and preserving investment in Europe.

The industries call themselves the two strategic pillars of the EU economy. Together, they provide more than 15 million jobs – about 13 million in the automotive sector and 2.5 million in the steel industry. They form the basis of Europe’s industrial power, stimulating innovation and the development of entire production chains.

The sectors are closely linked, with the automotive industry being the second largest consumer of steel and a significant part of metallurgical research focused on automotive applications. At the same time, European steelmakers are facing record low capacity utilization due to global overproduction, high energy and carbon prices, and weak demand in the EU. The situation is also affected by the slow recovery of the market after the pandemic and the aging of the car fleet, which reduces demand for new cars.

After several rounds of strategic dialogues with the European Commission, both industries called for a shift from ambition to real action.

“Strong domestic steel production is key to the sustainability of automotive supply chains, providing a reliable local source of raw materials and reducing dependence on volatile markets,” said EUROFER President Henrik Adam.

ACEA President Ola Källenius, in turn, noted that it is impossible to create a competitive European car without competitive European steel.

“Smart regulation can be beneficial for both sectors, in particular by encouraging car manufacturers to voluntarily use low-carbon steel,” he added.

The steel and automotive sectors are calling on the EU to create a fair and feasible framework for industrial transformation that will simultaneously preserve jobs, competitiveness, and contribute to the achievement of Europe’s climate goals.

As GMK Center reported earlier, in the first quarter of 2025, the EU steel market showed mixed dynamics. Real steel consumption declined for the eleventh consecutive quarter, by 5.5% year-on-year, following a 7.6% decline in the fourth quarter of 2024. At the same time, apparent steel consumption grew by 2.2% year-on-year, marking the second consecutive quarter of positive dynamics after a 0.5% increase at the end of 2024.