According to the Economic and Steel Market Outlook 2026-2027/Q2 2026 Report from the Economic Committee of the European Steel Association (EUROFER), the construction sector is expected to remain the main source of resilience for EU steel demand in 2026, supported by infrastructure spending, NextGenerationEU funding and the delayed effects of monetary easing.
EUROFER stated that construction, the EU’s largest steel-consuming sector, 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, supported by public construction schemes at EU and national levels.
According to EUROFER, construction output increased for three consecutive quarters in 2025, rising by two percent year on year in the third quarter and by 3.1 percent in the fourth quarter. The association noted that this growth provided important support for overall demand from steel-using sectors, particularly as automotive output remained weak.
Looking ahead, EUROFER expects construction output in the EU to rise by 1.5 percent in 2026, despite higher interest rates linked to renewed inflationary pressures. In 2027, construction output is forecast to increase by 2.9 percent, supported by a recovery in housing demand and a further pick-up in infrastructure spending.
