European steel sector confronts Chinese imports and capacity glut

EU lawmakers and industry groups warn that the European steel industry is under severe pressure from Chinese imports and a growing global overcapacity. European Parliament member Daniel Obajtek warned that by 2025 the bloc could lose €90 billion in added value, with Poland alone facing a €11 billion loss and about 45,000 steel‑related jobs at risk. He cited data from the Confederation of Entrepreneurs and Employers and the Oriental Studies Center, noting daily job losses of around 500 workers across the EU. The EU’s Carbon Border Adjustment Mechanism (CBAM) and a new regulation set to take effect on 1 July 2026 will lower tariff‑free steel import quotas by 47 % and raise tariffs to 50 % once quotas are exceeded, in an effort to curb excess capacity that could reach 721 million tonnes by 2027.

The Spanish Steelmakers Association (UNESID) echoed these concerns, reporting that in 2025 Spain’s crude steel output fell 0.4 % to 11.8 million tonnes while imports remained at a historic high of about 10.4 million tonnes, one‑third of which came from non‑EU sources. UNESID called for stronger, coordinated EU safeguards, emphasizing steel’s strategic role for energy, infrastructure, transport, defence and clean‑technology decarbonisation. The combined industry warnings signal mounting uncertainty for Europe’s strategic steel sector and its contribution to broader economic and climate goals.