ArcelorMittal Luxembourg Urges Swift EU Action to Safeguard Steel Industry Amid Global Challenges

Call for Action from Differdange

During its New Year's ceremony held on Wednesday, January 21, 2026, in Differdange, Luxembourg, ArcelorMittal Luxembourg issued a strong appeal for urgent European intervention to preserve a competitive and low-carbon steel industry. Valérie Massin, country manager for ArcelorMittal Luxembourg, and Pierre Jacobs, CEO of long products Luxembourg, presented a detailed analysis of the European steel market's precarious situation.

The company underscored that the European steel sector is currently facing a confluence of severe challenges, including rampant global overcapacity, mounting pressure from imports, and persistently high energy costs. These factors are collectively weakening the industry's competitiveness and threatening its long-term sustainability.

Mounting Global Overcapacity and Import Pressure

The European steel industry is grappling with a significant imbalance in the global market. In 2024, global steel production reached approximately 1.8 billion tonnes, with nearly three-quarters originating from Asian producers. In contrast, the European Union's share stands at less than 10%, equating to around 130 million tonnes, marking a substantial 25% decline from pre-crisis levels.

The issue of global overcapacity is further exacerbated by projections from the OECD, which anticipates an additional 157 million tonnes of carbon-intensive capacity by 2026, adding to the 551 million tonnes of global steel overcapacity recorded in 2023—a figure four times the EU's annual steel production. This oversupply has led to a reversal in trade flows, with the EU becoming a net importer of steel since 2017. Imports now constitute a significant 27% of the EU market, further undermining domestic production and contributing to low capacity utilization rates, often below 70%.

Soaring Energy Costs and Decarbonization Efforts

High energy costs represent another critical hurdle for European steelmakers. ArcelorMittal recently implemented a €25/t price increase for long products across Europe, directly attributing this decision to the escalating energy expenses. Data indicates a 41% surge in electricity prices in Germany compared to October 2024, alongside a 22% increase in European gas prices.

Despite these economic pressures, ArcelorMittal remains committed to its decarbonization goals, aiming for net-zero carbon emissions by 2050. The company has set targets to reduce its global emissions intensity by 25% by 2030 and by 35% for steel produced in Europe. In a move to support sustainable practices, ArcelorMittal's plants in Luxembourg, Belgium, France, and Spain have joined the Low Emission Steel Standard (LESS), a voluntary initiative promoting industrial decarbonization.

Urgency for EU Policy Implementation

ArcelorMittal's call for action aligns with the European Commission's steel and metals action plan, introduced in March 2025. This plan aims to bolster trade defense mechanisms, curb imports, and implement the Carbon Border Adjustment Mechanism (CBAM). Key proposals include limiting tariff-free import volumes to 18.3 million tonnes annually—a 47% reduction from 2024 quotas—and imposing a 50% duty on imports exceeding this threshold.

The steel giant emphasized the critical need for the rapid deployment of these measures, warning that any delays could significantly diminish their effectiveness throughout 2026. The industry faces a challenging landscape, with EU steel production having plummeted by 34 million tonnes since 2018, and nearly 100,000 jobs lost over the past 15 years.