Apparent steel consumption in the EU could rise by 0.4% y/y in 2026 – EUROFER

Actual steel consumption this year may rise by 1.4% y/y

The European Steel Association (EUROFER) forecasts that apparent steel consumption in the EU will continue to grow, albeit at a more moderate pace: by 0.4% year-on-year in 2026, to 135 million tonnes. The forecast for next year anticipates growth of 2.2% year-on-year, to 138 million tonnes. These figures are set out in EUROFER’s report for the second quarter of 2026 (‘Economic and Steel Market Outlook 2026–2027’).

According to the association’s estimates, real steel consumption, which rose by 0.9% in 2025 following a three-year decline, is forecast to grow by 1.4% year-on-year in both 2026 and 2027, driven by restocking.

 ‘This slight improvement in demand should not be confused with a genuine recovery. Production remains weak, energy costs are high, and uncertainty linked to global trade and geopolitical tensions continues to weigh on investment and industrial activity,” said Axel Eggert, Director of EUROFER.

Despite the recovery in consumption, capacity utilisation in the EU steel sector remains subdued. In the first quarter of 2026, this figure stood at 65.4 per cent, virtually unchanged from the 2025 average (65 per cent). The association emphasises that this indicates that fundamental market conditions remain weak.

Demand from key steel-consuming industries is expected to receive a further boost in 2027. According to forecasts, the weighted industrial production index in steel-consuming sectors is set to rise by 2.4%. The main drivers of this growth will be the construction sector, mechanical engineering and the automotive industry.

As reported by GMK Center, apparent steel consumption in the EU rose by 4.4% year-on-year in 2025 to 134.4 million tonnes. Against this backdrop, domestic steel production fell by 2.9% year-on-year to 125.8 million tonnes, the lowest level on record. This is almost 60 million tonnes below the level seen before the 2008 financial crisis.