EU Steel Demand to Recover in 2026 as CBAM and Trade Curbs Lift Prices

Speaking to Platts, Marcegaglia said he remains broadly optimistic about annual steel consumption growth, particularly in the second half of the year as the impact of inventory destocking fades.

SEATTLE (Scrap Monster): European steel demand is expected to show a moderate recovery in 2026, with prices already responding to tighter trade policies and the upcoming rollout of the EU Carbon Border Adjustment Mechanism (CBAM), according to Antonio Marcegaglia, CEO of Italy’s Marcegaglia Group.

Speaking to Platts, Marcegaglia said he remains broadly optimistic about annual steel consumption growth, particularly in the second half of the year as the impact of inventory destocking fades. Infrastructure investment, especially in Germany and the wider engineering sector, is expected to improve, while automotive steel demand is likely to remain stable rather than decline.

ALSO READ:

China's Steel Exports will Exceed 100 Million Tonnes in 2025- Baosteel

CANACERO: U.S. Steel Exports Pose Threat to Mexican Steel Industry

Marcegaglia noted that supply dynamics could play a more decisive role than demand. He expects EU steel imports to fall 35–40% year on year in 2026 as new protective trade measures replace existing safeguards and CBAM-related uncertainty weighs on supply.

Key Market Drivers

·         Stronger EU trade measures supporting prices

·         CBAM implementation in 2026 adding cost pressure

·         Potential €40–100 per tonne price impact, equal to about 8–10% of production costs

·         Lower import volumes tightening regional supply

• Canada Approves $53 Billion Anglo American–Teck Merger, Paving Way for Global Copper Giant
• EGA Seeks Equity Partners for Oklahoma Aluminum Smelter Project
• Nippon Steel’s U.S. investments ‘at a crossroads’
• AKFA Aluminum Solutions Opens First U.S. Manufacturing Plant in Kentucky