Steel over-capacity is existential threat, says Eurofer

The European Steel Association (Eurofer) has warned of a deepening global steel crisis and is urging the EU to act swiftly to adopt its new steel trade measure.

The cry for help from steel-makers comes after the release of the latest OECD data showing that global steel excess capacity reached around 640 million tonnes in 2025, more than 200 million tonnes above total OECD steel production and is set to continue rising. At the same time, global steelmaking capacity has climbed to a record 2.4 billion tonnes.

Existential threat

Axel Eggert, dg of Eurofer, says: ‘The OECD findings are clear: global steel overcapacity is not only massive, it is growing. This is an existential threat to European steelmaking, investment and jobs.’

Eurofer argues that the new EU steel trade measure restricting imports currently under negotiation is urgently needed to prevent further market destabilisation.

Quota

The proposed system introduces a tariff-rate quota, allowing controlled volumes of imports while protecting the EU market from the effects of global overcapacity and trade diversion. Eurofer warns that any weakening of the proposal will reduce its effectiveness.

Eggert adds: ‘EU negotiators must not dilute the new trade measure currently on the table. It must remain robust, enforceable and in place before the existing safeguard expires in June. Any gap would leave the EU steel market exposed at a critical moment for Europe.’