Steel struggling, Brussels announces plan to “ensure a competitive and sustainable industry”

Brussels – Weakened by high energy prices, raw material access issues, international competition and new tariffs from Washington, the European steel sector is at a critical conjuncture. The production of European steel (as of November 2024) has plummeted by 34 million tons since 2018, reaching only 126 million tons in 2023, while imports, which make up 27 per cent of the EU market, further exacerbate the production decline of an industry crucial to the European economy.

The President of the European Commission, Ursula von der Leyen, well aware of the situation, had announced the launch of a “Strategic Dialogue on Steel” last February 7, during the visit of the College of Commissioners to Poland. A platform, along the lines of those already established for agriculture and automotive, to “chart a course decisive for the future of the European steel industry.” The EU executive confirmed today (Feb. 25) that the first meeting will be held on March 4 and will involve key players from the entire production chain, including producers, raw material suppliers, buyers, and civil society representatives. Executive Vice President Stephane Séjourné has also been tasked with developing a “Steel and Metals Action Plan,” which will be launched in the spring.

The dialogue and related plan rest on the EU competitiveness compass, particularly the long-awaited Clean Industrial Deal. The focal points under discussion will be increasing competitiveness and circularity, ecological transition, decarbonization and electrification of the sector, and ensuring correct trade relations with foreign countries, carried out on an international level playing field. This last point appears to reference competition in the sector with China. In this light, the Plan would also be geared toward countering “Chinese overcapacity flooding European markets,” as von der Leyen called it during her visit to the rotating EU Council presidency in Poland.