The European steel industry has restarted approximately 10 million mt of crude steelmaking capacity in 2026, helping preserve an estimated 80,000 jobs across the steel value chain, according to the European Steel Association (EUROFER). The association also reported that European steel producers have made investment decisions worth at least €3.4 billion so far this year, with a further €2.4 billion expected by the end of 2026.
The developments were discussed during a meeting on October 12 between newly elected EUROFER president Geert van Poelvoorde, the association's vice-presidents and European Commissioner for Trade and Economic Security Maroš Šefčovič, approximately 100 days after the EU's new steel trade measure entered into force.
EU steel trade measure supports early signs of stabilization
According to EUROFER, the new steel trade measure, introduced on July 1, has contributed to improving confidence in the European steel industry following years of declining production and increasing import pressure.
EUROFER noted that EU steel imports increased by 14 percent in 2025, while crude steel production declined to a historic low of 125.8 million mt. The new measure was introduced against the backdrop of increasing global steel overcapacity and its impact on the European market.
The association emphasized that the restart of approximately 10 million mt of production capacity and the investment decisions announced in 2026 represent initial signs of stabilization rather than evidence of a sustained recovery.
EU steel exports decline as demand remains weak
Despite the recent developments, EUROFER's latest Economic and Steel Market Outlook 2026-2027 indicates that market conditions remain challenging. According to the association, EU steel exports declined by nine million mt between 2018 and 2025, followed by a further 20 percent year-on-year decrease in the first half of 2026.
Meanwhile, apparent steel demand in the EU is expected to increase by only 0.1 percent in 2026, reflecting continued weakness in market conditions.
EUROFER calls for stronger protection against trade circumvention
Commenting on the developments, Geert van Poelvoorde, EUROFER president, stated that the new EU steel trade measure had provided the industry with greater stability, allowing production capacity to restart and investment decisions to proceed.
However, he emphasized that the initial improvement should not be interpreted as a full recovery and called for measures to prevent circumvention of the new trade restrictions.
Van Poelvoorde also highlighted the need for internationally competitive energy prices, fair carbon emission costs for European producers, an effective Carbon Border Adjustment Mechanism and stronger markets for steel manufactured in the EU.
