EU steel companies face great changes in the future

Due to declining demand, rising costs and cheap imports, the EU steel industry may need to close three-quarters of its capacity in the next 20 years. This will directly lead to the future prospects of the EU steel industry. If the measures are not taken in time, the steel industry may undergo tremendous changes.

The European Iron and Steel Industry Federation Chairman Wolfgang stated that in the next 20 years, European production will no longer be competitive, at least in standard grade steel. The biggest threat to competition is not from big producers such as Brazil and China because they are still subject to high transportation costs. Instead, they are neighboring Russia, Turkey and Ukraine, which are continuously expanding their sales to the EU. Wo also said that the upsurge of steel consumption is coming to an end because China's steel demand growth rate has dropped from 9-10% per year to 6-7%; US demand is stable but not strong; Europe has delayed investment in infrastructure and the automotive industry has not furthered With signs of improvement, its steel consumption is expected to decline.