The European Steel Association (EUROFER) has warned that the latest OECD data confirm a worsening global steel crisis, while urging the EU to swiftly adopt its new steel trade measure to protect the market.
According to the OECD, global steel excess capacity reached around 640 million mt in 2025 and is expected to continue increasing, highlighting growing pressure on global markets, as SteelOrbis previously reported. The OECD data show that total global steelmaking capacity has climbed to a record 2.4 billion mt, reflecting continued expansion despite weak demand conditions. Excess capacity remains significantly higher than output in OECD countries, exceeding their total steel production by more than 200 million mt.
“Existential threat” to European steel
EUROFER described the situation as critical for the European steel sector. Axel Eggert, director general of EUROFER, said, “The OECD findings are clear: global steel overcapacity is not only massive, it is growing. This is an existential threat to European steelmaking, investment and jobs.”
Against this backdrop, EUROFER stressed that the EU’s new steel trade measure currently under negotiation is urgently needed to prevent further market destabilization.
The proposed system would introduce a tariff-rate quota (TRQ) mechanism aimed at:
- controlling import volumes,
- limiting trade diversion,
- and protecting the EU market from the impact of global overcapacity.
EUROFER cautioned that any dilution of the proposed measure would reduce its effectiveness in addressing import pressure. The association emphasized that the new framework must remain robust and enforceable to ensure meaningful protection for the industry.
With the current EU steel safeguard measures set to expire in June 2026, EUROFER warned that timing is critical.
Mr. Eggert stated, “The EU negotiators must not dilute the new trade measure currently on the table. It must remain robust, enforceable and in place before the existing safeguard expires in June. Any gap would leave the EU steel market exposed at a critical moment for Europe.”
