Will it pay to be large in the EU steel industry? The answer may not be straightforward

Summary:

The EU steel industry faced major challenges in the shape of rising prices for raw materials, fierce competition from international producers, and global overcapacity. Niccolò Pisani and Emilio Riva explain that the reaction to these problems had often been to advocate increased market concentration.

However, the disruptive influence of artificial intelligence and growing anti-globalisation sentiment, epitomised by Donald Trump’s decision to impose a 25% duty on European steel at the start of June 2018, highlighted that market concentration may not be the best approach for facing the challenges of the future.