The problem of global steel overcapacity is getting worse – EUROFER

The problem of global steel overcapacity not only remains unresolved, but is getting worse. In such circumstances, the EU has an urgent need for strict post-security measures on steel. This is stated in a statement by the European Steel Association (EUROFER).

As noted, the latest data released by the Organization for Economic Cooperation and Development’s (OECD) Steel Committee at a meeting in Paris indicate that global excess steel capacity will increase from about 602 million tons in 2024 to 721 million tons in 2027. This is more than five times the steel production in the European Union.

“The trends illustrated by the OECD prove that the global steel overcapacity problem not only remains unsolved but it’s constantly and significantly worsening. This unsustainable situation points to the shortcomings of the EU safeguards where the growing disconnection between imports allowed into the EU market and actual demand cannot be addressed,” said Axel Eggert, EUROFER Director General.

The association insists that the European Commission should negotiate and adopt safeguard measures as soon as possible after the expiration of the current ones, as provided for in the Steel and Metals Action Plan.

As GMK Center reported earlier, EUROFER believes that the Steel and Metals Action Plan requires immediate implementation. European steelmakers note that energy prices remain a problem.