EU steel demand signals stability after three-year decline

The report "Economic and Steel Market Prospects for 2026-2027 – First quarter report" published by the World Steel Manufacturers Association showed that steel demand in the European Union began to show signs of stability after a three-year decline. According to a report by the European Steel Manufacturers Association (EUROFER) "Economic and steel market prospects for 2026-2027" for the first quarter, published by the European Steel Manufacturers Association (EUROFER), steel demand in the European Union began to show signs of stabilization after a three-year decline. However, the report says that the recovery will be limited, and consumption levels in the coming years will remain well below pre-pandemic levels. Under these conditions, steel consumption is expected to increase by 2.4% in 2025, instead of the 0.2% decrease projected in the previous forecast. It was noted that this increase would be due to higher-than-expected demand in some national markets and would partially offset the impact of trade disruptions, including U.

S. customs duties. In terms of supply, crude steel production in the EU continued to decline. According to the report, production in 2025 fell to 125.8 million tons from a level of 130 million tons in 2024, a decrease of about 3% year-on-year. EUROFER stressed that this situation points to the ongoing recession in the European steel sector and the constant low capacity utilization due to weak demand and increasing import pressure. According to the EU steel market data, steel consumption recovered in the third quarter of 2025 after declining in the previous two quarters. During this period, consumption reached 32 million tons, an increase of 4.6% year-on-year. Shipments to the domestic market continued a similar trend, showing an increase of 3.4% in the third quarter after a decrease of -1.6% in the previous quarter. On the contrary, in previous years, supplies to the domestic market declined due to weak demand, falling by -4.6% in 2023 and -2.8% in 2024. A significant increase was observed in imports. Steel imports to the EU, including semi-finished products, increased by 10% compared to the previous quarter in the third quarter of 2025. As a result, the share of imports in total steel consumption in the EU increased from 25% in the previous quarter to a record 29%. For the whole of 2024, the share of imports was 27%. The report also included changes in steel-using sectors. The steel cost-weighted Industrial Production Index (SWIP) rose 1.8% in the third quarter of 2025 after six quarters of decline. Nevertheless, the index still reflects the impact of weakness in the automotive sector, as well as mechanical engineering and household appliances production.

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