EU steel exports fall 20% as demand outlook remains flat

Europe's steel market is facing significant challenges, as exports plummeted by 20% in the first half of 2026, according to the European Steel Association's latest outlook. The decline in exports was observed across all major export destinations. Meanwhile, crude steel production hit a historic low of 125.8 million tonnes in 2025 and further decreased by 1% in the first five months of 2026.

The outlook predicts a meager growth of 0.1% in apparent steel consumption in 2026, with an anticipated increase of 2.3% in 2027. Despite a slight improvement in capacity utilization to 67%, it remains low compared to historical standards. The European Union continues to be a significant net importer of steel, with exports to third countries declining across major international markets such as the United States, India, Turkey, and China.

The recovery of Europe's industrial sector appears to be far from secure, as energy costs have surged, adding pressure to energy-intensive industries. The EU's new steel trade measure is deemed an essential step, but a more comprehensive industrial recovery is needed to bring back production, investment, and quality jobs in Europe.