EUROFER urges trade actions amid global steel overcapacity

Mysteel: At the Ministerial Meeting of the Global Forum on Steel Excess Capacity (GFSEC) held on 8 October, the European Steel Association (EUROFER) stressed that growing global steel overcapacity requires immediate and coordinated trade actions from GFSEC member countries.

In its statement, EUROFER described the global steel market as being driven by "destructive dynamics", which are threatening thousands of jobs across Europe.

New projections at the GFSEC Ministerial Meeting showed that global steel overcapacity could reach 630 million tonnes (mnt) by 2026, equivalent to five times the EU's crude steel production in 2023.

This challenge poses significant risks to the economies of regions with open markets, particularly the EU. The influx of underpriced, carbon-intensive steel is distorting global markets, undermining competitiveness, and jeopardising decarbonisation efforts, as steel plays a crucial role in supporting employment, innovation, and clean technology that is essential to the green transition.

Axel Eggert, Director General of EUROFER, emphasised that relying on market forces alone to address overcapacity is no longer viable. He called for a robust strategy, including unilateral trade actions such as tariffs on steel imports.

"European steelmakers are investing billions in decarbonisation, but these efforts are at risk of being wiped out by the additional excess capacity projected by 2026... We need emergency measures to curb the spillover from global overcapacity and a long-term solution to tackle its root causes," Eggert concluded.

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