‘Brussels comes with action plan for European steel sector’

This article was last updated on March 18, 2025

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‘Brussels comes with action plan for European steel sector’

The European Commission will come to the rescue of its own steel industry in various ways. This is apparent from a document that will be published on Wednesday and that is in the hands of FD.

Many European steel producers are having a hard time, partly due to competition from China and American import duties on steel and aluminum. With new measures against, among other things, Chinese staaldumping and high energy prices, the EU wants to offer a counterbalance.

High energy prices

The European Commission states in the action plan that the steel sector is very important for economic safety and social stability. According to the committee, the capacity of the European steel industry is now used for around 65 percent. That must at least be 85 percent to be able to compete well.

To help the sector, for example, Brussels wants to do something at high energy prices for the European steel sector. Gas is about five times as expensive in Europe as in the US. Large consumers in the steel companies are hit hard. The European Commission wants these companies to be able to get lower net rates than others. They must also be given priority when connecting to electricity networks, above other types of companies.

Another hot issue is dumping steel on the European market by China, among others. That is already happening, but since the new American import duties on steel and aluminum of 25 percent, the European Commission is afraid that dumping will increase even further. Through cheap steel from China, market prices are falling, making European producers difficult to stay competitive.

The EU took measures against this earlier, including import quotas. If the parties import more than a certain amount, they pay a levy on that. That measure, which would be in force until 30 June next year, will be extended and tightened.

CO2 limit tax

The so-called CO2 limit tax of the EU is also being overhauled. Companies that produce in the EU pay for the greenhouse gases that are released. The steel sector also falls under this measure. With the CO2 limit tax, these companies must be protected against imports from regions where less strict climate rules apply.

European steel companies believe that this border tax is not functioning properly now.

Moreover, the levy only applies to steel, but not to products that contains steel. The new plans include the promise that the European Commission will come up with a proposal at the end of this year to meet producers.

The new Brussels action plan is not exclusively aimed at steel, but also on metals such as aluminum, copper and nickel. All these metals are also important for European defense plans, the EU emphasizes in the plan.