The European Steel Association (EUROFER) indicates that continued trade disruptions and weak industrial demand may reshape the regional trade landscape. 

European steel consumption is projected to decline by 0.2% year-on-year to 128 million tons by 2025, with the prospect of a recovery having been postponed until 2026.

The European market is facing price competition from imports and increasingly severe market pressures. The surge in steel imports, primarily from Turkey, South Korea, China, India, Ukraine, Taiwan, and Indonesia, is putting pressure on domestic mills' sales.

In addition, the EU needs to strengthen the CBAM; otherwise, its implementation may backfire and ultimately harm European mills. 

Downstream steel industries saw output contract by 0.9% in Q2, marking the sixth consecutive quarter of decline. The automotive industry experienced a particularly significant drop, impacted by global economic uncertainty, trade tensions, and weak market confidence. 

Demand in the construction sector grew slightly by 0.1% in Q2, remaining flat compared to the previous quarter. Despite continued support for public infrastructure projects, the industry still faces rising costs and labor shortages.