European steel prices rise 23% despite weak demand, MEPS reports

European hot-rolled coil prices increased by more than 23% year-on-year in the third quarter of 2026, despite continued weak demand across most steel-consuming industries, according to steel market research company MEPS International.

The increase reflects significant changes in European steel market conditions, including tighter trade defence measures, the introduction of the Carbon Border Adjustment Mechanism (CBAM) and rising energy and shipping costs linked to the conflict in the Middle East.

Research conducted for the MEPS European Steel Report indicates that these factors are pushing steel prices higher even in the absence of a meaningful recovery in consumption.

“The dynamics at play in the European steel sector right now are unprecedented,” said MEPS analyst James Platts. “Because of new trade defence measures, CBAM and rising inflation, steel buyers are having to spend more at a time when demand remains weak across the majority of end-use sectors.”

The divergence between prices and demand is expected to be a central topic at EuroBlech 2026, taking place at the Hanover Exhibition Grounds in Germany. MEPS analysts Platts and Adam Crookes will attend the trade fair on October 20 and 21 to discuss market developments with steel producers, distributors and buyers.

According to MEPS, the combination of trade policy changes and higher operating costs is fundamentally reshaping purchasing conditions in Europe. Steel buyers face increasing costs while many downstream industries continue to struggle with subdued order volumes.

MEPS monitors steel prices and market developments across major European markets, including Germany, France, Italy, Spain, Belgium and the United Kingdom, as well as several northern European countries.

The company expects trade measures, CBAM implementation and inflationary pressures to remain important factors influencing European steel pricing in the coming months.

Source: MEPS, Photo: Fotolia