Steel is a fundamental pillar of a healthy economy, essential for infrastructure, construction, and industrial development. Industrialisation typically starts with the establishment of a domestic steel industry.

However, some formerly developing countries struggle to scale down their steel production once they reach a mature industrial stage. Meanwhile, other countries continue to expand their steel industries, often guided by government strategies aimed at boosting exports. This dynamic has led to production capacities far exceeding global demand. 

As of 2024, global steel overcapacity exceeded 602 million tonnes - more than 4 times the EU’s total annual steel consumption – and is projected to rise to 721 million tonnes by 2027. Despite the growing mismatch, capacity reductions are frequently delayed or avoided due to government intervention, resulting in entrenched structural overcapacity and significant market distortions.

As a consequence, EU steel trade deficit has massively widened since 2021. A positive trade balance in finished steel products of 11 million tonne in 2013 has turned into a deficit of 10.7 million tonnes in 2024.

Find out more details in our full fact-sheet available for download below, covering:

• BEYOND CHINA: GLOBAL OVERCAPACITY AND ITS SPILLOVER GOES GLOBAL
• THE US-EU STEEL TRADE DISPUTE: ADDING FUEL TO THE FIRE
• THE EU STEEL INDUSTRY DECLINE IS NOT INEVITABLE
• THE ECONOMIC FALLOUT OF GLOBAL EXCESS CAPACITY
• THE URGENT NEED FOR ACTION
• WHAT ARE THE EXISTING TRADE DEFENCE MEASURES AND WHY AREN’T THEY ENOUGH
• WHY THE CURRENT SAFEGUARD REGIME FALLS SHORT
• DESIGNING A HIGHLY EFFECTIVE NEW TRADE  MEASURE TO ADDRESS  GLOBAL EXCESS CAPACITY
• EU DE-INDUSTRIALISATION IS NO LONGER A THREAT— IT’S HAPPENING