EU steel production hits historic low as imports gain record market share

European steel production fell to a historic low in 2025 as weak demand and rising import pressure continued to weigh on the sector, according to the latest economic report from the European Steel Association (EUROFER).

EU crude steel output declined to approximately 125.8 million tonnes in 2025, down from 130 million tonnes in 2024. Persistent market weakness has forced many European producers to scale back output and restructure capacity.

Although apparent steel consumption in the EU is expected to increase by 2.4% in 2025 and by 1.3% in 2026, EUROFER notes that this growth largely reflects a rebound from exceptionally weak demand in previous years rather than a sustained recovery. Even with the expected improvement, EU steel consumption will remain significantly below pre-pandemic levels, by around 11 million tonnes in 2026 and 9 million tonnes in 2027.

At the same time, imports continue to gain market share. Total steel imports, including semi-finished products, rose by 14% in 2025, while finished product imports increased by 9%. As a result, imports accounted for a record 29% of EU steel consumption in the third quarter of 2025.

The EU’s steel trade balance has therefore deteriorated sharply, with the trade deficit widening to around 2 million tonnes per month, including approximately 1.2 million tonnes of finished steel products.

“Europe’s steel production is shrinking while imports as a share of the EU market are rising,” said Axel Eggert, Director-General of EUROFER. “EU policymakers must agree on new steel trade measures quickly and avoid weakening them. Otherwise, Europe risks losing more industrial capacity.”

Eggert also warned that volatile energy prices remain a major risk for the sector. Following the outbreak of the war in Iran, the benchmark Dutch TTF gas price rose above €50 per megawatt hour in March 2026, increasing cost pressure across Europe’s industrial value chains.

Meanwhile, activity in steel-using sectors has shown early signs of stabilization. The Steel Weighted Industrial Production (SWIP) index increased by 1.8% in the third quarter of 2025 after six consecutive quarters of decline. However, the overall outlook remains fragile.

For 2025, SWIP is expected to decline slightly by 0.3% following a sharp contraction of 3.6% in 2024. Moderate growth is forecast for 2026 (+1.9%) and 2027 (+2.2%). While construction activity is beginning to recover, sectors such as automotive and mechanical engineering continue to face pressure from weak global demand and ongoing trade tensions.

Source: Eurofer, Photo: Fotolia