European steelmakers are facing weaker demand and rising competitive pressure in overseas markets, highlighting the limits of EU trade protection even as CBAM changes the conditions for steel imports into Europe.
According to a report published on 1 October citing Eurofer, European steel exports 2026 have come under significant pressure, with shipments falling 20% overall and exports to the United States declining 29% in the first half of 2026.
The report identified several factors behind the deterioration, including high energy costs, US steel tariffs and Chinese steel oversupply. Together, these pressures are affecting European producers beyond the protection provided by measures applied within the EU market.
Export weakness challenges EU steel competitiveness
The figures underline the broader challenge facing EU steel competitiveness. Measures that improve the position of European producers against imports into the EU do not automatically restore their ability to compete in third-country markets.
For steelmakers, stronger domestic sales would need to compensate for weaker export volumes if producers are to avoid lower capacity utilisation or increased competition among suppliers within Europe.
This creates a separate question for the industry: how much steel can European customers absorb at prices capable of covering operating costs while also supporting investment?
CBAM protection has a defined market boundary
The role of CBAM trade protection is therefore distinct from the factors affecting European exports. CBAM governs the carbon-cost treatment of covered imports entering the EU, while European producers selling into markets such as the United States remain exposed to the commercial conditions of those destinations.
The export figures also show why domestic market protection cannot by itself resolve the industry’s wider cost and demand pressures. European producers continue to face energy costs, foreign tariffs and competition from producers operating in markets with different cost structures.
The latest Eurofer export trends consequently provide a measure of the pressure facing European steel outside the EU market. CBAM may strengthen the position of domestic producers against covered imports, but export performance will continue to depend on demand, tariffs and competitors’ costs in individual destination markets.
