Global steel excess capacity is expected to grow from an estimated 602Mt in 2024 to 721Mt by 2027 – over five times the European Union's steel production, according to the latest data unveiled by the OECD at its recent meeting in Paris.
Ulf Zumkley, the committee’s chair, speaking to 293 government and industry delegates from 41 major steel producing economies, drew what the European Steel Association (EUROFER) described as 'an extremely worrying picture, where global steel excess capacity is expected to grow from an estimated 602Mt in 2024 to 721Mt by 2027 – over five times the European Union's steel production.
According to EUROFER, the European Steel Industry, already severely blighted by global overcapacity and Donald Trump's import tariffs, is in crucial need of 'strict and effective EU post-safeguard measures to ensure it's survival.
"The trends illustrated by the OECD prove that the global steel overcapacity problem not only remains unsolved but it’s constantly and significantly worsening."
Axel Eggert, director-general, EUROFER.
Axel Eggert, director-general of EUROFER, commented: "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".
Eggert added that the European Commission 'must now walk the talk and deliver as soon as possible on a post-safeguard trade measure with a highly effective level of protection as envisaged in the European Steel and Metals Action Plan'.