Systemic changes in the global order have set new challenges for European stainless steel companies and forced them to rethink their business practices. The focus is now on maintaining profitability rather than increasing sales or production, says Andrzej Michalski—Stepkowski, chairman of the Polish Stainless Steel Manufacturers Association (SSN).
From 17% of global stainless steel production in Europe in 2014 to less than 10% in 2025, with Asia leading the way in stainless steel production growth. However, Poland is one of the largest consumers of stainless steel in the EU, accounting for 10% of the market with an estimated demand of 490,000 tons in 2025.
While globalization has led to the shift of low—cost manufacturing to the East, innovation has since also developed in this direction, and Asia is now selling specialized products to the West, Michalski-Stepkowski noted at the stainless steel forum in Chorzow on Thursday. Meanwhile, the EU has lost its competitiveness due to high energy and labor costs, as well as strict regulation.
The global oversupply of various commodities has led to geopolitical unrest, the collapse of alliances, the disruption of supply chains, trade wars and, as a result, the threat to EU industry.
Artificial intelligence, meanwhile, is revolutionizing business practices. The United States is investing heavily in data centers, which will require significant energy supply, including from nuclear plants, which opens up great opportunities for stainless steel suppliers.
In response to these challenges, EU policies have become more pragmatic about the once-severely punitive regulation of the climate. "Today, not a single EU politician in Brussels wants to admit that he once supported the green deal," Michalski—Stepkowski said at an event attended by Callanish. The policy was "ill-conceived," he added.
EU politicians recognized that something went wrong in 2024 and instructed Mario Draghi to prepare his widely known report, on the basis of which various EU policy initiatives were developed. These include the Clean Industry Agreement and the Steel and Metal Products Action Plan.
"There was a period when I thought that we[the European industry]would turn into a museum, and China would take over," Michalski—Stepkowski said. "I'm more optimistic today because … I see that the situation is changing." Business will continue, but in a different way, with strategies adapted to maximize profits using the resources available in Europe. Artificial intelligence and optimization will be used.
