Eurofer calls for urgent trade actions to address global steel overcapacity
by David Fleschen

The European Steel Association (EUROFER) has called on countries participating in the Global Forum on Steel Excess Capacity (GFSEC) to implement immediate trade measures to address growing global overcapacity in the steel sector. Recent data released by the GFSEC shows a further increase in excess steel capacity, prompting concerns about the impact on the global market and the potential loss of thousands of jobs across Europe.
Axel Eggert, Director General of EUROFER, emphasized the need for proactive measures, stating, “The time for waiting for overcapacity to resolve itself through market forces is over. A credible strategy is needed, focusing on concrete actions that GFSEC countries can take, including unilateral trade measures. Continuing to keep markets open primarily benefits those countries that have withdrawn from the Global Forum or continue to export their surplus steel, either in response to import surges or while neglecting their own overcapacity issues.”
EUROFER’s call to action highlights the need for a comprehensive approach that addresses all affected products and countries, as global steel overcapacity is a widespread challenge. Eggert also noted that many countries have already imposed tariffs on steel imports as part of their response.
During the GFSEC Ministerial Meeting held today, new projections indicated that global steel overcapacity could reach 630 million metric tonnes by 2026—equivalent to five times the EU's crude steel production in 2023. This increase poses a significant risk to economies with open markets, particularly within the EU. The surplus of carbon-intensive, low-priced steel threatens market stability, competitiveness, and the progress of decarbonization efforts in the industry, which is vital to the green transition.
“European steelmakers are making significant investments in decarbonization, but these efforts are in danger of being undermined by the projected rise in global overcapacity,” added Eggert. “For every million tonnes of EU production capacity lost, an equivalent volume of imports enters our market. We need urgent actions to manage the spillover effects of this overcapacity and a long-term solution to tackle its underlying causes.”
Source: Eurofer, Photo: Fotolia