ArcelorMittal calls for stronger EU support for green steel

ArcelorMittal SA

06/02/2025 13:21

By Anna Peverieri and Johan  BODINIER
       Feb 6 (Reuters) - ArcelorMittal  MT.AS  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.

 (Reporting by Anna Peverieri and Johan Bodinier in Gdansk;
Editing by Milla Nissi)
 ((Anna.Peverieri@thomsonreuters.com;
johangeorgesroger.bodinier@thomsonreuters.com))