Brussels, 02 December 2025 – Unchanged negative conditions – U.S. tariffs and trade disruptions, economic and geopolitical tensions, protracted weak demand and still high energy prices – continue to weigh on the European steel market. EUROFER’s latest Economic and Steel Market Outlook confirms for 2025 another recession in both apparent steel consumption (-0.2%, unchanged) and steel-using sectors (-0.5%, revised from -0.7%). A potential recovery is expected only in 2026 for the Steel Weighted Industrial Production index (SWIP) (+1.8%, stable) and for apparent steel consumption (+3%, slightly revised from +3.1%) – although consumption volumes would still remain well below pre-pandemic levels. Steel imports retained historically high shares (27%), while exports plummeted (-9%) in the first eight months of 2025.

“European steelmakers cannot yet see the end of the tunnel. The new EU steel trade measure proposed in October needs to be adopted as a matter of urgency and enter into force at the beginning of 2026 – thus well before the expiry of the current safeguard regime in June 2026 – as otherwise the ongoing stockpiling of cheap imports will continue and nullify the effectiveness of the measure for the entire year. Similarly, the Carbon Border Adjustment Mechanism (CBAM) must be made rock-solid and watertight before the end of the year, or its implementation due to start in January risks not only backfiring but to becoming counterproductive for our producers”, said Axel Eggert, Director General of the European Steel Association (EUROFER), following the publication of the Economic and Steel Market Outlook Q4 2025.

EU steel market overview

In the second quarter of 2025, apparent steel consumption reversed its short-lived recovery and fell again after two modest consecutive increases (-1.8%, after +2.2% in the first quarter), reaching 34.3 million tonnes. Projections for steel demand remain extremely uncertain, with improvements not expected before the first quarter of 2026, and still dependent on a more positive industrial outlook and an easing of global tensions – both currently unpredictable.

Similarly, domestic deliveries recorded a quarterly decline (-1.6%), following an increase (+1.3%) in the previous quarter. In the same period, imports contracted as well (-3.3%) after another marginal decline (-0.3%). However, over the first eight months of 2025, imports still edged up (+0.3%). The import market share rose again to 27% (from 25% in the previous quarter), remaining at historically high levels.

EU steel-using sectors

In the second quarter of 2025, output in steel-using sectors contracted for the sixth consecutive time (-0.9%, after -3.2% in the preceding quarter). Recession in the automotive sector (-3.8%), almost flat growth (+0.1%) in construction, overall weak manufacturing, and the disruptive effects of U.S. tariffs and geopolitical turmoil are expected to weigh on SWIP again in 2025, leading to another annual downturn (-0.5%). Only modest growth is projected to return in 2026 (+1.8%).

Notes for editors

Contact
Lucia Sali, Spokesperson and Head of Communications, +32 2 738 79 35, (l.sali@eurofer.eu)

About the European Steel Association (EUROFER)
EUROFER AISBL is located in Brussels and was founded in 1976. It represents the entirety of steel production in the European Union. EUROFER members are steel companies and national steel federations throughout the EU. The major steel companies and national steel federation of Turkey, Ukraine and the United Kingdom are associate members.

The European Steel Association is recorded in the EU transparency register: 93038071152-83.

About the European steel industry
The European steel industry is a world leader in innovation and environmental sustainability. It has a turnover of around €215 billion and directly employs around 298,000 highly-skilled people, producing on average 146 million tonnes of steel per year. More than 500 steel production sites across 22 EU Member States provide direct and indirect employment to millions more European citizens. Closely integrated with Europe’s manufacturing and construction industries, steel is the backbone for development, growth and employment in Europe.

Steel is the most versatile industrial material in the world. The thousands of different grades and types of steel developed by the industry make the modern world possible. Steel is 100% recyclable and therefore is a fundamental part of the circular economy. As a basic engineering material, steel is also an essential factor in the development and deployment of innovative, CO2-mitigating technologies, improving resource efficiency and fostering sustainable development in Europe.