US Steel Košice warns of the threat of collapse of the EU steel industry

Slovak steel company US Steel Košice warns of the threat of collapse of the EU steel industry. Due to cheap imports and weak demand, the company is forced to operate at only two-thirds of its capacity. According to Michal Pinter, Director of Government and European Affairs, the situation is critical and threatens Europe’s strategic industry, Euractiv reports.

«The low prices and high import levels make production uneconomical. This is not sustainable. We are in a state of emergency. If we don’t act now, we risk losing a strategic sector permanently,» Pinter said during a meeting at the plant.

The statement comes amid the European Commission’s consultations on the renewal of safeguard measures that expire on June 30, 2026. The EC plans to present new proposals in the third quarter of 2025.

In recent years, steel production in the EU has declined significantly, from 160 million tons in 2018 to 130 million tons in 2024. EUROFER predicts that without stronger safeguards, volumes could fall to 10 million tons by 2050, which would be only 5-10% of the continent’s needs.

As a way out of the crisis, Pinter proposes to introduce a new, more flexible system of safeguard measures that can respond quickly to changes in the market situation and be applied equally to all countries, including those with free trade agreements. In particular, he called for restricting imports to historical levels and imposing duties of up to 50% above quotas, following the example of recent US decisions.

As GMK Center reported earlier, US Steel Kosice reduced steel production by 12.8% in 2024 compared to 2023, to 3.83 million net tons.  Shipments of steel products for the year amounted to 3.58 million tonnes, down 8.2% y/y. These are the lowest volumes of steel sales to customers since 2020.