The European Steel Producers Association (EUROFER) has warned that the latest OECD data confirms the worsening of the global steel crisis, and called on the EU to adopt new steel trade measures as soon as possible to protect the market.
According to the OECD, global excess steel production capacity reached approximately 640 million tons in 2025 and is expected to continue to increase, indicating increasing pressure on global markets, as previously reported by SteelOrbis. OECD data shows that total global steel production capacity has reached a record 2.4 billion tons, reflecting continued growth despite weak demand. Excess capacity continues to significantly exceed the output of OECD countries, exceeding their total steel output by more than 200 million tons.
."Threat to the existence" of the European steel industry
EUROFER described the situation as critical for the European steel sector. Axel Eggert, CEO of EUROFER, said: "The OECD's conclusions are clear: the excess steel production capacity in the world is not only huge, but also growing. This is a real threat to European steel production, investment and jobs."
Against this background, EUROFER stressed that the new EU steel trade measure, which is currently under negotiation, is urgently needed to prevent further market destabilization.
The proposed system provides for the introduction of a tariff quota (TRQ) mechanism aimed at:
- import volume control,
- limiting trade reorientation,
- and protecting the EU market from the effects of global overcapacity.
EUROFER warned that any softening of the proposed measure would reduce its effectiveness in dealing with import pressure. The Association stressed that the new system must remain reliable and enforceable in order to provide meaningful protection to the industry.
Given that the current EU steel safeguards expire in June 2026, EUROFER warned that timing is crucial.
Mr. Eggert stated: "EU negotiators should not weaken the new trade measures that are currently being discussed. They must remain reliable, enforceable, and in effect until the expiration of existing protective measures in June. Any gap will make the EU steel market vulnerable at a critical moment for Europe."
Author: SteelOrbis Editorial Team
Steelorbis.com
