Construction is expected to remain the main source of support for EU steel demand, with output forecast to increase by 1.8 percent in 2026 and 2.9 percent in 2027, according to the European Steel Association's (EUROFER) Economic and Steel Market Outlook 2026-2027/Q3 2026 report.
Infrastructure spending underpins recovery
Accounting for 37 percent of apparent steel consumption, construction continues to benefit from infrastructure investment, NextGenerationEU funding and the delayed effects of monetary easing. Output increased for a fourth consecutive quarter in January-March 2026, although year-on-year growth slowed to 0.4 percent from 3.1 percent in the preceding quarter.
Housing recovery expected to strengthen growth
EUROFER expects recovering housing demand and increased infrastructure spending to accelerate construction growth in 2027, while higher interest rates associated with renewed inflationary pressures continue to weigh on housing activity in 2026. The sector's expansion should help offset persistent automotive weakness, supporting a modest and uneven recovery across EU steel-consuming industries.
