European steelmakers recorded a sharp decline in overseas shipments in the first half of 2026, with exports falling 20%, according to industry data from the European Steel Association (EUROFER).
The decline was particularly pronounced in several major destinations. EU steel exports to the United States fell 29%, while shipments to India declined 24%, Turkey by 21% and China by 18%.
Energy costs and global competition pressure exports
The export decline comes as European producers face high energy costs, U.S. tariffs and Chinese oversupply, factors cited by EUROFER and reported by the Financial Times as weighing on the industry’s competitive position.
The EU’s Carbon Border Adjustment Mechanism (CBAM) addresses differences in carbon costs associated with imports entering the European market. However, the mechanism does not directly improve the competitiveness of European steel producers when they sell into third-country markets.
This distinction leaves EU mills exposed to competitive pressures outside the bloc even as measures affecting imports seek to influence conditions within the European market.
Production and demand remain weak
European steel production has also continued to decline. EU crude steel output fell 2.9% to 125.8 million tonnes in 2025, before dropping a further 1% during the first five months of 2026, according to EUROFER.
Domestic demand is expected to provide only limited support in the near term. EUROFER forecasts apparent steel consumption growth of 0.1% in 2026, followed by 2.3% in 2027.
Even with that projected recovery, consumption would remain approximately 7 million tonnes below its 2019 level.
Trade protection and export competitiveness
The combination of declining exports and only gradual recovery in European steel consumption leaves mills facing pressure in both domestic and international markets.
Trade measures can alter the competitive conditions for European producers in their home market, while CBAM targets carbon-cost differences on imports into the EU. Neither framework, however, creates demand for steel in overseas markets.
European steelmakers therefore remain dependent on both a viable domestic market and production costs that allow them to compete for sales outside the EU.
