Europe's steel industry called on the European Union's newly approved executive on Wednesday to take immediate action to avert what it termed the sector's irreversible decline.

Industry group Eurofer said the bloc needed to agree a robust plan for European steel addressing trade, the EU's carbon levy on imports, energy and scrap as part of broader proposals to help companies reach the EU's 2050 carbon neutrality goal.

"The clock has already struck midnight," Eurofer said in a statement.

Commission President Ursula von der Leyen has pledged to unveil the proposals, referred to as the Clean Industrial Deal, in the new Commission's first 100 days from its expected start on Dec. 1.

Eurofer said global steel overcapacity reached 551 million tonnes in 2023, four times the EU's annual steel production, with OECD projections pointing to a further 157 million tonnes of capacity due by 2026.

EU steel production has fallen by 34 million tonnes in the five years to 2023 and capacity utilisation to 60%, with imports now accounting for 27% of the EU market.

"Europe's deindustrialisation is accelerating, with steel, automotive, renewables, and batteries all on the brink. Without immediate action, Europe’s manufacturing base will disappear," Eurofer said.

Eurofer said the EU needed to reinforce its trade defences with a regime of tariffs, make the carbon levy on certain imported products work to allow EU steel exports, ensure affordable clean energy, and retain steel scrap in Europe.

ArcelorMittal, the world's second-largest steelmaker, said last Friday that it was delaying planned green investments because of policy uncertainties.

(Reporting by Philip Blenkinsop; Editing by Jan Harvey)