Apparent steel consumption in the EU will grow by 3% in 2026 – EUROFER

Apparent steel consumption in the EU will begin to recover in 2026, increasing by 3%. This is stated in the latest report by the European Steel Association (EUROFER) – “Economic and steel market outlook 2025-2026, Q4.”

This is slightly lower than the association’s previous estimate of 3.1%. However, as the association notes, this will happen provided that industrial conditions improve and global tensions ease, but these factors remain difficult to predict at this stage.

In 2025, EUROFER expects apparent steel consumption in the EU to decline slightly (-0.2%), marking the fourth consecutive annual recession. The situation is due to the expected impact of US tariffs, which, however, is difficult to quantify due to the associated uncertainty and trade issues.

“The overall evolution of steel demand remains highly uncertain. No improvement in apparent steel consumption is expected until the first quarter of 2026, and consumption volumes are projected to remain well below pre-pandemic levels,” according to the EUROFER review.

In the second quarter of 2025, steel consumption in the EU amounted to 34.3 million tons, down 1.8% year-on-year. In January-March, this figure increased by 2.2% year-on-year.

Demand for steel in key consumption sectors remains subdued, reflecting the generally weak conditions for the entire EU manufacturing sector.

According to EUROFER estimates, the construction sector will see minimal production growth in 2025 (+0.1% after a 2% decline in 2024) due to the slow recovery of the housing market despite monetary policy easing.

The automotive industry remains stagnant due to ongoing uncertainty and delays in the introduction of electric vehicles. At the same time, this sector is more vulnerable to global trade shocks in supply chains. The association expects production in the automotive sector to decline by -3.8% in 2025 and recover by 1.4% in 2026.

It should be recalled that EUROFER and the industriAll Europe trade union federation are calling for the urgent adoption of new protective measures for steel. The social partners are calling on the EU institutions to implement them by April 2026.