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Steel News November 22, 2019 09:30:01 AM

EUROFER: Reinforce EU Safeguard to Save Steel Sector and Jobs

Paul Ploumis
ScrapMonster Author
EUROFER noted that the revisions to EU safeguard implemented in October this year have proved to be insufficient.
EUROFER: Reinforce EU Safeguard to Save Steel Sector and Jobs

SEATTLE (Scrap Monster): The European Steel Association (EUROFER) has called upon the European Commission to reinforce EU safeguards to defend the region’s steel sector and thousands of jobs supported by it.

According to Axel Eggert, Director General of EUROFER, Europe is still flooded by steel imports, despite muted domestic demand growth. The domestic steel workforce in the region has reduced by one-fifth since 2008. The companies in the region have announced production cuts of nearly 15 million tonnes, so far this year. Consequently, approximately 15,000 jobs have been impacted, he added.

EUROFER noted that the revisions to EU safeguard implemented in October this year have proved to be insufficient. The market conditions in Europe as well as those across the globe have turned even more negative. The association called for realignment of the safeguards to reflect the deteriorating market conditions. An urgent EU intervention is necessary to prevent disintegration of the region’s steel sector and the several hundreds of communities dependent upon it.

ALSO READ: EU Steel Association Calls for Swift Solution to End Import Crisis

The global steel industry stares at an overall overcapacity of around 450 million tonnes, with China accounting for nearly two-thirds of it. The EU should take concrete steps to address global overcapacity, as it is being cited as the primary reason for steel market weakness and industry job losses across the EU, EUROFER noted.