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EUROFER: European steel market under pressure as steel output hits record low
The European Steel Association (EUROFER)’s latest Economic and Steel Market Outlook 2026-2027 shows that the European steel market faces significant pressure, with falling exports, record-low production, and stagnant demand.
EU steel exports to third countries dropped 20% y-o-y in the first half of 2026, including declines of 29% to the US, 24% to India, 21% to Turkey, and 18% to China. EUROFER Director General Axel Eggert warned that declining exports, low output, and rising energy costs continue to hinder Europe’s industrial recovery.
EU crude steel production fell to a record low of 125.8 million tons in 2025 and declined another 1% in January-May 2026. Apparent steel consumption is forecast to grow just 0.1% in 2026, despite a 1.5% increase in the first quarter. Demand is expected to rise 2.3% in 2027 but remain around 7 million tons below the 2019 level.
Meanwhile, European natural gas prices recently reached approximately EUR 80/MWh, up 132% from the start of 2026, increasing pressure on energy-intensive industries and squeezing profit margins.
EU steel exports to third countries dropped 20% y-o-y in the first half of 2026, including declines of 29% to the US, 24% to India, 21% to Turkey, and 18% to China. EUROFER Director General Axel Eggert warned that declining exports, low output, and rising energy costs continue to hinder Europe’s industrial recovery.
EU crude steel production fell to a record low of 125.8 million tons in 2025 and declined another 1% in January-May 2026. Apparent steel consumption is forecast to grow just 0.1% in 2026, despite a 1.5% increase in the first quarter. Demand is expected to rise 2.3% in 2027 but remain around 7 million tons below the 2019 level.
Meanwhile, European natural gas prices recently reached approximately EUR 80/MWh, up 132% from the start of 2026, increasing pressure on energy-intensive industries and squeezing profit margins.
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