Last week, the European Steel Association (EUROFER) published an open letter sent to EU heads of state and government and to the EU institutions by CEOs of leading steel companies representing the bulk of EU steel production. The open letter highlights the challenges facing the steel sector in a climate of global overcapacity, falling domestic demand and booming imports.
The European steel industry pointed out that the global overcapacity in steel and the use of the EU market as a dumping ground for the world’s excess capacity are at the root of the problem. Imports into the EU have more than doubled since 2013, reaching nearly 30 million mt following the US steel import tariffs imposed in 2018. EU steel demand has increased only marginally since 2013 and is expected to drop in 2019.
The letter said: “We call on the EU Member States, European Parliament, and European Commission to work to stop the imports that are distorting the EU market, to take immediate action by strengthening the EU’s steel safeguard measures, with effect as of 1 July 2019 and to convene an emergency meeting with the European steel industry to discuss solutions to ensure the sector survives in the face of imbalanced external pressures.”
Signatories include ArcelorMittal, ThyssenKrupp, Tata Steel, NLMKi Acerinox, Salzgitter, CELSA, SSAB, Hellenic Halyvourgia among others, as well as steel associations across the EU.