News » The resurgence of the pandemic in Europe and across the world is putting further pressure on EU steel.
The resurgence of the pandemic in Europe and across the world is putting further pressure on EU steel.
Recent updates
Apparent steel consumption in the EU fell (-25.5%) year-on-year in the second quarter of 2020, after a drop (-12%) in the first quarter. This was the most severe drop in EU steel consumption ever recorded.
The exceptionally negative trend in steel demand seen in the second quarter of 2020 is – as widely expected – the result of the economic and industrial lockdown in response to the COVID-19 pandemic.
The state of EU and global steel means there is an increased urgency to deal with excess steel capacity worldwide, as this overcapacity will undermine the recovery. In October, national and regional associations and members of the Global Forum on Steel Excess Capacity called on G20 leaders to keep working on a multilateral solution to the problem. EUROFER welcomes continued EU leadership on this issue. Additionally, the EU steel safeguard must be adapted and extended to avoid a resurgence in steel demand being matched by an unhindered flood of dumped imports.
The coming months may prove to be doubly challenging: the resurgence of COVID-19 cases is prompting the reimposition of control measures. Ensuring the effectiveness of public health measures whilst minimising the impact on the economy is a fine balancing act but it is essential because further setbacks will have long-run implications for all sectors and their ambitions for the coming years. EU leaders will have to act decisively to ensure that Europe gets back on track once the pandemic has faded.
In the meantime, stay safe.
Brussels, 08 October 2024 – The latest data disclosed by the Global Forum on Steel Excess Capacity (GFSEC), revealing a further increase in global overcapacity, require immediate, comprehensive trade actions by GFSEC like-minded countries. The impact of this destructive dynamic, distorting the global steel market and threatening thousands of jobs across Europe alone, needs to be tackled as a matter of urgency, says the European Steel Association.
Brussels, 10 September 2024 – The Draghi Report thoroughly identifies the bottlenecks to both the EU industry's decarbonisation and competitiveness. The proposed recommendations for energy-intensive industries, including on energy, trade, carbon leakage, financing and lead markets, should be integrated into the upcoming Clean Industrial Deal and implemented with concrete measures as a matter of urgency. Alignment across different policies is crucial, and should be accompanied by sector-specific initiatives to enable the transition of each industry including steel, asks the European Steel Association.
Brussels, 05 September 2024 – The latest developments in the steel sector and across critical value chains are worrying signs of a steady deterioration, endangering the survival and the transition of steelmakers and their key manufacturing customers in Europe, such as automotive. A Clean Industrial Deal including swift and radical measures in EU industrial, energy and trade policies, is the last chance to ensure Europe’s prosperity and shield European industry from cheap imports driven by third countries’ unfair trade practices, overcapacity and lower climate ambition, urges the European Steel Association.
The European Steel Association (EUROFER)
172 Avenue de Cortenbergh
1000 Brussels
Belgium
Email: mail@eurofer.eu
Phone: +32 (0) 2 738 79 20
