Europe’s steel market continues to struggle despite minor demand improvements, according to EUROFER’s Economic and Steel Market Outlook 2026-2027.
Apparent steel consumption rose by 4.4% in 2025, but this jump relied on exceptional factors rather than sustained health. Growth will drop to 0.4% in 2026, leaving demand 10 million tons below pre-pandemic numbers.
High energy costs, weak manufacturing, and global trade and geopolitical tensions block a true recovery. The automotive sector faces continuous pressure from weak consumer demand and slow electric vehicle adoption.
Fortunately, construction provides some resilience despite high financing costs. Meanwhile, international competition and global overcapacity burden regional producers.
EUROFER expects ongoing industry pressure without better competitiveness and lower energy expenses.