Global concerns over excess capacity in subsidized steel are leading to significant trade adjustments within the European Union. The Organization for Economic Co-operation and Development (OECD) estimates that global excess steel capacity will reach 745 million tonnes by 2028, a surplus largely attributed to state subsidies, particularly in China. In response, the EU is implementing new safeguard measures.
For instance, the general secretary of the Turkish Steel Producers’ Association noted that the bloc’s next safeguard action could reduce Turkey’s steel exports by as much as 60 percent. These measures are compounded by a new carbon border levy, adding substantial costs to exported goods. The trend reflects a broader pattern of industrial restructuring.
Major European producers have already faced difficulties, halting production or announcing job cuts due to competition from cheap Asian imports. Despite the global push toward protectionism, the measures place financial strain on producers who have not benefited from state support. The policy shift, championed by figures like Karin Karlsbro, involves revising quotas and imposing duties on excess material.
This complex steeling of trade policy penalizes certain national industries for their structure, regardless of their efforts to operate independently. The underlying issue remains the subsidy imbalance within the global steel market. While the OECD advocates for governments to curb subsidies, nations often treat their domestic production as too strategic to surrender.
The increasing barriers suggest that the global effort to regulate trade flows is shifting focus from addressing the root cause to building higher tariff walls, impacting producers who find themselves caught between global oversupply and restrictive trade regulations.
Topics: #steel #steeling #themselves
