According to the Economic Committee of the European Steel Association (EUROFER) Steel Market Outlook 2026-2027/Q2 2026 report, the construction sector is expected to remain the main source of resilience in EU steel demand in 2026, supported by infrastructure spending, NextGenerationEU financing and the lagged effects of monetary easing.
EUROFER said construction will account for The largest steel consuming sector in the EU accounts for 37 percent of apparent steel consumption. After contracting by 3.3 percent in 2024, the sector recorded a modest recovery in 2025, with output increasing by 1.3 percent, helped by government construction programs at the EU and national level.
According to EUROFER, construction output in 2025 increased for three consecutive quarters, rising two percent year-on-year in the third quarter and 3.1 percent in the fourth quarter. The association noted that this growth provided important support to overall demand from steel-using sectors, especially as automotive output remains weak.
Looking ahead, EUROFER expects EU construction output to grow by 1.5 percent in 2026, despite higher interest rates associated with renewed inflationary pressures. Construction output is forecast to grow 2.9 percent in 2027, driven by a rebound in housing demand and further increases in infrastructure spending.
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