Since autumn 2025, EU steel rolling capacities have been operating close to maximum levels, with growing signs that carbon steel rolling mills across the region have now reached their capacity limits. 

It was reported that all major European mills are currently running at utilization rates between 97% and 100%, a trend that follows the full booking of EU stainless steel mills’ order books by December 2025, which pushed delivery times into late spring 2026. The key drivers behind this tight capacity situation include the introduction of the EU’s CBAM, as well as planned steel tariffs and quota reductions.

Meanwhile, German steel producers, despite describing 2025 as the fourth consecutive year of crisis, achieved significant efficiency gains, as reported by the German Steel Federation (WV Stahl). These improvements allowed their rolling mills to produce hot-rolled steel with up to one million tons less crude steel than in previous years, helping to mitigate some pressure amid the region’s constrained capacity.

If additional steel demand is redirected to domestic producers due to ongoing policy measures, the EU market could face a further widening of supply shortages in the coming months.