ArcelorMittal Urges EU to Bolster Steel Industry Amidst Cost Pressures and Chinese Imports

Gdansk, Poland - ArcelorMittal, the world's leading steel producer, has appealed to the European Union (EU) for increased trade protections and support for green investissements as the industry faces challenges from high costs and low-cost imports from China.

"The European steel industry is under significant pressure," said CFO Genuino Christino. "We face exorbitant costs and unfair competition from imports, particularly from China."

Calling for Enhanced Trade Protections

Europe's steel industry association, Eurofer, has requested a 50% reduction in steel import quotas under the EU's safeguard system. "Imports have surged to record levels," Christino noted, with flat products accounting for over a quarter of the market.

Paused Decarbonization Plans

ArcelorMittal temporarily suspended portions of its European decarbonization plan in November 2024 due to escalating energy costs, policy uncertainty, and weak demand. "While customers express interest in low-carbon steel, they are hesitant to pay premiums," a company spokesperson explained.

Government Support for Modernization

Ahead of ArcelorMittal's annual results, analysts anticipate that the company may leverage the EU's Green Deal for funding to upgrade its less efficient European mills. Christino emphasized the critical role of government support in modernizing production while maintaining competitiveness.

EU's Steel and Metals Action Plan

In response to the industry's concerns, the European Commission unveiled a "Steel and Metals Action Plan." This plan aims to streamline or postpone certain Green Deal regulations and support companies' green investments. The comprehensive plan will be released in spring 2025.