European Steel Industry Faces Crisis Amid Overcapacity and Rising Energy Costs

At the UNESID General Assembly, president Bernardo Velázquez, also CEO of Acerinox, warned that Europe’s steel sector is in a serious industrial crisis. He cited a global overcapacity of more than 640 million tonnes, growing imports—especially from China—and higher energy prices as key pressures. Production in Spain fell 19 % in the first quarter of 2026, the sharpest decline among European producers, while overall EU steel output showed a modest 0.4 % drop in 2025 to 11.8 million tonnes and consumption fell 0.5 % to 13.4 million tonnes.

UNESID members such as Megasa, Celsa, ArcelorMittal and Sidenor called for an ambitious reform of EU trade‑defence tools, including expanding the Carbon Border Adjustment Mechanism to the full steel value chain, introducing a “Melt & Pour” criterion and strengthening customs verification to curb import dumping. They also urged public‑procurement policies that favor European steel in strategic sectors like energy, infrastructure and defence. Energy costs were highlighted as a major competitiveness barrier, with industry asking for extensions of temporary tax reliefs on electricity.

The association noted that deliveries to the market fell about 1 % while exports rose 3.3 % to roughly 8 million tonnes in 2025. Velázquez summed up the situation: “Europa está sufriendo una crisis industrial importante” and stressed that a robust European industrial policy is essential for decarbonisation and strategic autonomy.