In a market outlook released Monday, the association said the prospects for the remainder of 2017 and 2018 are positive as the domestic economy and healthy export opportunities are expected to boost activity in steel-using sectors.

However, it said global overcapacity and the Trump administration's protectionist policies “remain the main risk for the stability of the E.U. steel market.”

“With no structural solutions for the underlying problem of global overcapacity in sight, the number of protectionist -- and even isolationist -- measures look set to increase. In particular, measures potentially stemming from the U.S. Section 232 investigation may lead to a proliferation of disastrous global trade flow distortions,” said Axel Eggert, the association’s director general.   

The Section 232 investigation and the steel tariffs that might come about as a result were a significant topic during the Group of 20 summit last week in Germany, with leaders of the world’s largest economies throwing thinly veiled barbs at President Donald Trump, according to the Bloomberg news service. 

According to Bloomberg, China President Xi Jinping accused “developed nations” of engaging in unfair trade practices. And French President Emmanuel Macron took Trump to task on his belief that the U.S. is getting the short end of the stick on trade deals, Bloomberg said. 

The Trump administration is expected to announce its Section 232 findings soon. The European Union has said it is prepared to retaliate if the U.S. imposes tariffs on steel from member countries. Another country, however, has reported secured an exemption from any action. 

According to The Australian newspaper, Australia Prime Minister Malcolm Turnbull and Finance Minister Matthias Cormann met with Trump and other administration officials on the summit’s sidelines and were given assurances that Australian steel wouldn’t be subjected to trade measures, The Australian said.