It is reported that steel demand globally, in the EU in particular, has hugely declined as the financial crisis has pushed the economy to recession. The steel using sectors hit most directly are construction, automotive and the sectors which supply them, such as suppliers of equipment and parts and components. All of these sectors are steel intensive.

EU steel producers are now, individually, making the necessary response by cutting production temporarily, seeking to rebalance domestic supply and demand.

Mr Gordon Moffat director general of Eurofer said that "Given the current economic conditions severely impacting the steel sector, market forces and market driven behavior are now more important than ever. We ask the Member States and the Commission to ensure that recent EU steel producers’ responsible adjustment of production to demand is not nullified by third countries exporting their excess and, in some cases, subsidized production to the EU."

He added that "However, in today’s highly fragile market situation, the risk of opportunistic export surges to the EU from third countries which have failed to address their massive excess capacities is an imminent threat. We are therefore calling for the Commission and the Member States to remain vigilant and to take the necessary action in the event of market-disrupting import flows. We request the use of the trade defense instruments available to counter any unfair trade practices which are triggered by massive subsidization and pervasive government intervention in third countries. There should be no hesitation in the use of the trade defense instruments should it prove necessary."