EU steelmakers restart 10 million tonnes of production capacity in 2026

European steel producers have restarted around 10 million tonnes of crude steelmaking capacity in 2026, while investment decisions worth at least €3.4 billion have been taken, according to the European Steel Association (EUROFER). The developments follow the introduction of new EU steel trade measures in July.

EUROFER estimates that the resumption of production has helped preserve up to 80,000 jobs across the European steel value chain. The association also expects a further €2.4 billion in investment decisions before the end of the year.

The figures were discussed during a meeting between newly elected EUROFER President Geert van Poelvoorde, representatives of the association and European Commissioner for Trade and Economic Security Maroš Šefčovič.

Trade measures aim to limit steel imports

The new EU steel trade measure entered into force on 1 July 2026 in response to increasing global steel overcapacity and pressure on European producers.

Under the revised tariff-rate quota system, up to 18.3 million tonnes of steel can enter the EU annually without additional tariffs. Imports exceeding this volume are subject to a 50% duty.

The measures followed a difficult year for European steelmakers. In 2025, EU steel imports increased by 14%, while domestic crude steel production fell to a historic low of 125.8 million tonnes.

EUROFER considers the recent restart of production capacity and investment commitments early indications that the new trade framework is improving market conditions.

Weak demand continues to constrain recovery

Despite these developments, the European steel market remains under pressure from weak demand and declining exports.

According to EUROFER's latest Economic and Steel Market Outlook, EU steel exports decreased by 9 million tonnes between 2018 and 2025. Exports fell by a further 20% in the first half of 2026 compared with the corresponding period of 2025.

Domestic steel demand is expected to increase by only 0.1% in 2026, indicating that the sector remains far from a sustained recovery.

“The new EU steel trade measure has given our industry much-needed breathing space,” said EUROFER President Geert van Poelvoorde. “But stabilisation is not recovery.”

Industry calls for competitive energy prices

EUROFER is urging policymakers to strengthen the effectiveness of the trade measures and prevent exporters from circumventing the new restrictions.

The association also identifies internationally competitive energy prices, fair carbon emission costs and an effective Carbon Border Adjustment Mechanism (CBAM) as essential conditions for further investment and decarbonisation.

Additional priorities include stronger demand for steel produced within the EU and policies supporting the transition towards climate-neutral steelmaking.

The meeting with Commissioner Šefčovič also included senior representatives from Arvedi Group, Aperam, Riva Group and Nippon Steel Slovakia, alongside EUROFER Director General Axel Eggert.

While the restart of production capacity represents a positive development for European steelmakers, the industry's longer-term recovery will depend on improvements in demand, competitiveness and investment conditions.

Source and Photo: EUROFER