Steel is a fundamental pillar of a healthy economy, essential for infrastructure, construction, and industrial development. Industrialisation typically starts with the establishment of a domestic steel industry.
However, some formerly developing countries struggle to scale down their steel production once they reach a mature industrial stage. Meanwhile, other countries continue to expand their steel industries, often guided by government strategies aimed at boosting exports. This dynamic has led to production capacities far exceeding global demand.
As of 2024, global steel overcapacity exceeded 602 million tonnes - more than 4 times the EU’s total annual steel consumption – and is projected to rise to 721 million tonnes by 2027. Despite the growing mismatch, capacity reductions are frequently delayed or avoided due to government intervention, resulting in entrenched structural overcapacity and significant market distortions.
As a consequence, EU steel trade deficit has massively widened since 2021. A positive trade balance in finished steel products of 11 million tonne in 2013 has turned into a deficit of 10.7 million tonnes in 2024.
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Brussels, 26 February 2026 — Europe’s steel industry has warned that the current draft Industrial Accelerator Act could direct public support for low-carbon steel to producers outside the European Union, unless lawmakers include and tighten ‘Made in Europe’ provisions.
Brussels, 24 February 2026 - Europe’s energy-intensive industries have set out a series of proposals to ensure that the EU’s upcoming Electrification Action Plan delivers on its objectives to stimulate and boost electricity consumption in industry. In a joint position paper, industries warn that persistently high electricity prices risk undermining industrial competitiveness and decarbonisation efforts. They call for a policy framework that will enable EU industry in pursuing decarbonisation and industrial competitiveness.
Energy-intensive industries (EIIs) provide direct employment to around 2.6 million people in the EU and represent the foundations of critical and strategic value chains for the EU economy and society. The current economic and energy outlook of the European Union is making investments in electrification and the continued business operation of our sectors at serious risk, should the energy-cost challenge not be solved.
The European Steel Association (EUROFER)
172 Avenue de Cortenbergh
1000 Brussels
Belgium
Email: mail@eurofer.eu
Phone: +32 (0) 2 738 79 20
