Industry snapshot
Key public data points
Historical & forecast
Base year 2023. Each series is official through its own latest government-data year (shown in the legend on each chart), and years beyond that are Claight estimates. As of July 2026 the current year is still in progress (2026 annual data is not yet published), so the forecast runs to 2028.
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What does the Iron & Steel Manufacturing in European Union industry cover?
The industry encompasses the transformation of iron ore and recycled steel scrap into crude steel via integrated blast furnaces or electric arc furnaces, alongside primary processing into sheets, plates, bars, and tubes. It serves as a foundational pillar for European manufacturing value chains, supporting millions of indirect jobs in downstream engineering and metalworking sectors.
- •Under the NACE Rev. 2 system, the industry falls primarily under Division C24, specifically C24.10 (Manufacture of basic iron and steel and of ferro-alloys).
- •The sector directly employs approximately 293,000 workers across the European Union, while supporting an additional 2.5 million indirect jobs in steel-using value chains as of 2025.
- •Over 600 active steel mills and smelters operate within the EU, with the highest concentration of facilities located in Germany, France, and Italy.
Market Structure and Operators
Who operates in the industry and how is it structured?
The European steel market is highly consolidated at the primary production level but operates within a highly globalized and competitive trade environment. Production is split between integrated blast furnace-basic oxygen furnace (BF-BOF) routes using iron ore and coal, and secondary recycling routes utilizing electric arc furnaces (EAF).
- •Primary integrated steel production accounts for roughly 70% of German output, which is the EU's largest national steel producer.
- •Average capacity utilization across EU steel mills dropped to an unprecedented low of 67% in 2024 due to weak industrial activity.
- •Imported steel, including finished and semi-finished products, captured a record-high 29% share of the EU's apparent steel consumption by the third quarter of 2025.
Demand Drivers
What drives demand in the industry?
Steel consumption in the EU is directly driven by industrial activity in key steel-using sectors, most notably construction, automotive, and mechanical engineering. After years of contraction, demand has shown signs of stabilization as monetary easing delayed-effects begin to filter through to industrial projects.
- •Construction is the largest end-use market, accounting for approximately 31% of total steel demand, followed by the automotive sector at 25%.
- •The Steel Weighted Industrial Production (SWIP) index rose by 1.8% in the third quarter of 2025, breaking a streak of six consecutive quarterly declines.
- •The ongoing green transition and public infrastructure initiatives are accelerating demand for certified low-emission and 'green' steel.
Competitive Landscape and Notable Public Companies
Who are the notable companies in the industry?
The EU market is dominated by large multinational steelmakers that operate extensive regional networks of integrated plants and recycling mills. These players are actively restructuring operations, selling underperforming assets, and forming joint ventures to transition toward lower-carbon production methods.
- •ArcelorMittal, headquartered in Luxembourg, operates as the largest steel manufacturer in the European Union and globally.
- •Voestalpine AG, a major Austrian steel and technology group, focuses heavily on high-value steel products for automotive and aerospace applications.
- •Thyssenkrupp AG and Salzgitter AG remain leading German steel manufacturers, with Salzgitter acquiring full ownership of Hüttenwerke Krupp Mannesmann (HKM) in 2026.
- •SSAB AB, based in Sweden, leads the development of fossil-free steel using hydrogen-based direct reduction technology.
Recent Trends and Outlook
What are the recent trends and outlook?
The European steel industry is undergoing a structural transition focused on survival amid intense international trade pressures and decarbonization mandates. While apparent consumption is showing modest signs of recovery, domestic production remains severely constrained by high energy costs that are two to three times higher than those of global competitors.
- •EU crude steel production dropped by approximately 3% in 2025 to 125.8 million tonnes, down from 130 million tonnes in 2024.
- •The European Commission launched the Steel and Metals Action Plan in March 2025 to safeguard the industry, mitigate job losses, and accelerate decarbonization.
- •A modest recovery in the SWIP index is projected to reach 1.9% in 2026 and 2.2% in 2027, driven by a projected turnaround in automotive and construction.
Regulation and Compliance
How is the industry regulated?
Regulatory frameworks in the EU heavily influence the steel industry, forcing a rapid shift toward decarbonization while shielding domestic producers from carbon leakage. The phase-in of the Carbon Border Adjustment Mechanism (CBAM) and new emergency trade protections are reshaping the trade dynamics of steel entering the single market.
- •In mid-2026, the European Commission implemented strict new steel quotas, reducing tariff-free imports to 18.3 million tonnes annually and doubling out-of-quota tariffs to 50%.
- •The Industrial Decarbonisation Accelerator Act, targeting late 2025, introduces strict environmental criteria into public procurement to favor low-carbon steel.
- •To comply with the EU Taxonomy, steel plants must transition toward technical screening limits, targeting emissions under 1.331 tCO2e per tonne of hot metal produced.
Sources
Government, statistical and trade sources used for this Claight analysis.
- EUROFER Economic and Steel Market Outlook 2026-2027 (First Quarter Report, published 2026) ·
- European Commission Steel and Metals Action Plan (published March 2025) ·
- European Commission Implementing Regulation on the EU Taxonomy (2021/2026 update) ·
- Wirtschaftsvereinigung Stahl (WV Stahl) Facts and Figures 2025
Claight analysis of public industry data.