ArcelorMittal on Thursday called on the European Union to tighten trade protections and increase support for green investments, as high costs and cheap Chinese imports threaten the bloc's steel industry.
"The European steel industry is under significant pressure," CFO Genuino Christino told Reuters. "We face high costs, some imposed, and unfair competition from imports, directly or indirectly from China. The industry needs support."
Europe's main steel industry group Eurofer has asked for a 50% cut in steel import quotas under the EU's safeguard system.
"Imports have reached record levels in 2024," Christino said, noting imported flat products accounted for 27% of the market.
ArcelorMittal last November paused parts of its European decarbonisation plan citing high energy costs, policy uncertainty and weak demand.
"Although there is widespread interest from customers in low-carbon emissions steel, there is limited willingness among customers to pay premiums - and hence actually buy the steel as we only sell it at a premium," a company spokesperson said.
Sales of ArcelorMittal's XCarb low-carbon emissions steel doubled in Europe last year, but the spokesperson said those levels were still low, with 400,000 tonnes sold against 28.7 million tonnes of regular steel shipped in Europe.
Ahead of the company's annual results, KeyBanc analyst Philip Gibbs said ArcelorMittal may leverage the EU's Green Deal to secure funding for necessary upgrades to its less efficient European mills.
Christino confirmed that government support would be key in ensuring the company can modernize its production while staying competitive.
Last week, the European Commission announced a new "Steel and Metals Action Plan" aimed at streamlining or delaying certain Green Deal regulations while pledging to uphold EU climate goals, allowing companies to address their green investments capacities.
The full plan will be presented in spring 2025.
