EUROFER: Steel demand in the EU will show moderate growth in 2026, while capacity utilization will remain low

According to the report of the Economic Committee of the European Steel Association (EUROFER) "Steel Market Prospects for 2026-2027/Q2 2026", apparent steel consumption in the EU recovered faster than expected in 2025, increasing by 4.4 percent year-on-year to 134 million tons, driven by exceptionally strong growth in the second half of the year, there was a sharp increase in imports.

According to EUROFER, apparent steel consumption increased by 13.5 percent year-on-year in the fourth quarter of 2025, following a 4.7 percent increase in the third quarter. The increase partly reflects a comparison with the very weak volumes recorded in the same period of the previous year, as well as purchases postponed in anticipation of higher demand expected in 2026. However, the apparent steel consumption remains about 10 million tons below the pre-pandemic level.

Capacity utilization remains low, despite the recovery in consumption

EUROFER also noted that steel capacity utilization in the EU remains at a low level, reaching the level in the first quarter of 2026, this indicator has not changed from 65.4 percent in 2025. According to the association, this highlights the continued weakness of underlying market conditions, despite the recovery in steel consumption.

Looking to the future, EUROFER expects apparent steel consumption in the EU to continue to grow, albeit at a slower pace, by 0.4 percent in 2026 to 135 million tons, and then increase by 2.2 percent in 2027 to 138 million tons. Meanwhile, real steel consumption increased 0.9 percent in 2025 after three consecutive annual declines and is projected to increase 1.4 percent in both 2026 and 2027, driven by restocking.

Demand from steel-using sectors is expected to gain further momentum in 2027, with the steel-weighted industrial production index projected to grow by 2.4 percent, driven by increased production in construction, mechanical engineering, and automotive industries. the volume of production.

GDP growth persists despite geopolitical uncertainty

Meanwhile, EUROFER said that economic growth continued despite the geopolitical uncertainty. According to the report, EU GDP increased by one percent year-on-year in the first quarter of 2026, compared with growth of 1.4 percent in the fourth quarter of 2025. Over the same period, real GDP grew by 0.3 percent in Germany, 1.1 percent in France, 0.7 percent in Italy and 2.7 percent