The European steel industry is approaching a critical juncture in 2025. Governments across Europe are expected to address significant production and job cuts. The industry faces challenges from high decarbonization costs and overcapacity, particularly from China, leading to increased low-cost, CO2-intensive imports.
Since the financial crisis, European steel production has declined by nearly one-third, and employment has dropped by 25%. The market has deteriorated, with minimal trading activity and falling prices. The industry’s future depends on transitioning to low-carbon production and securing affordable renewable energy for new projects.