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

ArcelorMittal Luxembourg Calls for Urgent EU Intervention

ArcelorMittal Luxembourg has issued a strong appeal for rapid European Union measures to ensure the viability of a competitive and low-carbon steel industry. The call was made during the company's New Year's ceremony on Wednesday, January 21, 2026, held in Differdange, Luxembourg. The steel giant cited persistent global overcapacity, significant import pressure, and high energy costs as critical threats to the sector's future.

Mounting Pressures on European Steel

The European steel industry is grappling with a severe crisis, marked by a substantial decline in production and market share. Global steel production reached approximately 1.8 billion tonnes in 2024, with nearly three-quarters originating from Asia. In contrast, the EU's share stands at around 130 million tonnes, representing less than 10% of global production and a 25% decrease from pre-health crisis levels. Since 2017, the EU has become a net importer of steel, with capacity utilization rates often falling below 70%.

Global steel overcapacity reached an estimated 551 million tonnes in 2023, a figure four times the EU's annual steel production. Imports now constitute 27% of the EU market, intensifying competitive pressures on domestic producers. Furthermore, energy costs in Europe are reported to be 2-3 times higher than those faced by international competitors. This challenging environment has led to a 34 million tonne plummet in EU steel production since 2018 and the loss of nearly 100,000 steel jobs over the past 15 years.

Decarbonization Efforts Amidst Policy Gaps

ArcelorMittal has demonstrated a commitment to sustainability, aiming for global carbon neutrality by 2050 and a 35% reduction in European emissions by 2030. In Luxembourg, over 95% of the company's steel production relies on recycled scrap, significantly lowering its carbon impact. The company's sites in Luxembourg were also among the first globally to achieve ResponsibleSteel™ certification in July 2021. ArcelorMittal Europe has also joined the Low Emission Steel Standard (LESS), a voluntary initiative to create a unified framework for low-emission steel labeling.

Despite these efforts, ArcelorMittal has indicated delays in its decarbonization projects, attributing them to insufficient policy clarity and a lack of adequate support from the European Union. The company emphasizes that further investment in transitioning from coal-fired blast furnaces to hydrogen-ready technology is contingent on favorable policy, technological advancements, and market conditions.

EU's Response and Industry Demands

The European Commission has acknowledged the crisis, publishing a Steel and Metals Action Plan on March 19, 2025. This plan includes measures such as tightened safeguards to achieve a 15% import reduction, effective April 2025, and a €1 billion pilot auction in 2025 to support industrial decarbonization. Additionally, a proposal to protect the EU steel sector from overcapacity was introduced on October 6, 2025. This proposal aims to limit tariff-free import volumes to 18.3 million tonnes annually, a 47% reduction compared to 2024 quotas, and to double the out-of-quota duty to 50%.

ArcelorMittal has urged the urgent adoption of these proposed EU tariff quotas, deeming them vital for the survival of the EU steel industry and the long-term security of manufacturing. The company is preparing to increase production at its European facilities to meet anticipated demand changes and ensure supply-chain stability. The industry stresses that a strong, decarbonized steel sector is crucial for Europe's competitiveness, economic security, and strategic autonomy.