The issue of global steel overcapacity continues to worsen, and the European Steel Association (EUROFER) has called for urgent action to address the growing crisis. In a statement, EUROFER emphasized that the situation remains unresolved and is expected to intensify in the coming years.
According to the latest data from the Organization for Economic Cooperation and Development (OECD), the global steel industry’s excess capacity is projected to rise from 602 million tons in 2024 to 721 million tons in 2027—a figure that is more than five times the steel production capacity in the European Union.
Axel Eggert, EUROFER’s Director General, pointed out that the OECD's findings underscore the growing and unresolved issue of steel overcapacity. He added, “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 highlights the shortcomings of the EU safeguards, where the growing disconnection between imports allowed into the EU market and actual demand cannot be addressed.”
EUROFER has called on the European Commission to negotiate and implement new safeguard measures immediately after the expiration of the current protections, as outlined in the Steel and Metals Action Plan. The association stressed that these measures are necessary to safeguard the European steel industry from the negative impacts of overcapacity.
The steelmakers also expressed concerns about ongoing challenges such as high energy prices, which continue to be a significant burden for the industry.
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