In 2024, the European Union saw significant growth in exports of iron and steel, reaching €77.8 billion, with imports at €73.1 billion. This resulted in a trade surplus of €4.7 billion, although the physical weight of exports decreased by 17.3%, indicating a rise driven by increasing prices. Turkey was a major partner, leading in exports with €6.2 billion and ranking third in imports at €3.5 billion. The United States followed as the second largest export partner, with countries like the UK, Switzerland, and Mexico also playing significant roles in the trade of iron and steel with the EU.
Between 2019 and 2024, there were notable increases in exports of iron and steel to countries like Mexico and the United States, with rises of 54.1% and 51.1% respectively. Imports from India and South Korea also saw significant growth, at 89.2% and 43.0% respectively. India was the top importer of iron and steel from the EU, followed by South Korea, China, and the United Kingdom. These figures highlight the evolving trade relationships in the iron and steel industry between the EU and key international partners.
The European Commission has outlined plans to reduce steel imports by 15% from April, in response to new tariffs imposed by the United States. Concerns have been raised by European steel producers about the EU becoming a dumping ground for cheap steel redirected from the US market, potentially threatening European steel plants. The Commission’s Vice-President Stéphane Séjourné emphasized the need to protect EU steelworks from unfair foreign competition, particularly in the context of global over-capacities and challenges in the steel industry due to high energy prices and competition from other regions.
The EU’s trade relationships with key partners like Turkey and the US are crucial to the iron and steel industry, with significant amounts of trade flowing between these countries. The growth in exports and imports of iron and steel from 2019 to 2024 illustrates the dynamic nature of these trade relationships and the importance of effectively managing the trade balance in light of external factors such as tariffs and increased competition. The EU’s efforts to tighten import quotas and protect its steel industry from unfair competition reflect a proactive stance aimed at safeguarding the interests of European steel producers and workers.
With steel playing a vital role in various industries and infrastructure projects, maintaining a balanced approach to trade and ensuring fair competition is essential for economic growth and stability. The European Commission’s actions to address challenges in the steel industry and protect EU steelworks from external pressures demonstrate a commitment to promoting a level playing field and supporting the interests of European businesses and workers. By implementing measures to address issues such as global over-capacities and unfair trade practices, the EU aims to strengthen its position in the international market and foster sustainable growth in the iron and steel sector.
In conclusion, the trade dynamics in the iron and steel industry between the EU and key partners are influenced by various factors, including changes in global demand, pricing, and trade policies. The EU’s efforts to manage its trade relationships effectively, protect its steel industry from unfair competition, and promote a level playing field reflect a proactive approach to addressing challenges and ensuring the long-term viability of the sector. By working with international partners and implementing targeted measures, the EU aims to strengthen its position in the iron and steel market, support domestic producers, and promote sustainable growth in the industry.
