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NEWS
Recently, a series of key leaders of the European Steel Association, including the CEO of Tata Steel Europe, CEO of ArcelorMittal Europe, and CEO of voestalpine Steel Division, signed a call calling on the EU The "petition" to take emergency measures to save the local steel industry attracted widespread attention after it was published on the official website of the European Steel Association.
European steel industry said that the European steel industry is an integral part of many key manufacturing value chains in the EU and represents European innovation, ideal product solutions and high-quality jobs. European Steel is committed to contributing to the EU’s ambitious decarbonization targets and global climate protection goals, ensuring a just transition and high-quality jobs. However, the European steel industry is currently in the midst of its worst crisis since the financial and economic crisis of 2009. Without urgent measures, most EU member states will struggle to keep their steel industries resilient and sustainable, and thus unable to invest in ambitious decarbonization projects in 2030 and beyond. Since 2008, EU steel production has decreased by 30%, falling to 126 million tons in 2023. Over the past 15 years, structural adjustments and capacity reductions have resulted in the loss of nearly 100,000 jobs in the EU steel industry. Recently, capacity utilization in the EU steel industry has fallen to a minimum of around 60%.
The Ministerial Meeting of the Global Forum on Steel Excess Capacity (GFSEC) has just confirmed that global steel overcapacity (551 million tons in 2023) remains a rapidly growing structural problem. According to data from the Organization for Economic Cooperation and Development (OECD), by 2026, the world will add 157 million tons of new production capacity. As part of the Clean Industry Deal, the Steel Action Plan must include emergency measures and structural solutions.
In this context, the European Steel Association made the following suggestions to the heads of state and government of EU member states: First, take measures to strengthen and ensure the resolute implementation of the EU Trade Protection Instrument, adopt structural solutions, and comprehensively avoid global The spillover effects brought about by the continued deterioration of overcapacity. The second is to improve the "Carbon Border Adjustment Mechanism" (CBAM) to prevent downstream industry circumvention, resource transfer and out-migration, and to protect the EU's steel exports. The third is to take EU-wide action to reduce energy costs in energy-intensive industries facing fierce global competition and ensure access to raw materials while keeping scrap within the EU. The fourth is to establish a leading market to promote the growth of demand for green steel in Europe.
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