“If there is genuine commitment to maintain a domestic industry, the combined policy landscape must be tackled together to form a supportive environment that enables European steelmaking to decarbonize and thrive,” Mittal wrote. 

Mittal said European steelmakers have never been so challenged, “caught as it is between the pincers of decarbonization costs and the fallout from severe overcapacity, especially in China, which has resulted in increased imports.”

“The negative impact on profitability comes at a time when the industry is expected to make final decisions on decarbonization projects that will cost billions of euros, investing in technologies — think green hydrogen — which are not economically viable today,” Mittal said. 

ArcelorMittal last week said it was delaying final investment decisions on European hydrogen-ready DRI-EAF facilities, citing a unfavorable policy and market conditions. 

"These projects were premised on a favourable combination of policy, technology and market developments that would facilitate decarbonization investment by helping offset the significantly higher capital and operating costs that this transition strategy would involve. However European policy, energy and market environments have not moved in a favourable direction," the company said, 

"Green hydrogen is evolving very slowly towards being a viable fuel source and natural gas based DRI production in Europe is not yet competitive as an interim solution. Furthermore, there are significant weaknesses in the carbon border adjustment mechanism (CBAM), trade protection measures need strengthening in response to increasing imports due to China overcapacity, and there is limited willingness among customers to pay premiums for low-carbon emissions steel."