EU Steel Exports Drop 12% in Q2 Amid Global Trade Headwinds

Steel Export Decline Reflects Weak Global Demand

Steel exports from the European Union dropped significantly in Q2 2025, falling 12% year-over-year, according to the EUROFER Economic and Steel Market Outlook Q3. This downturn followed a modest 1% rise in Q1, signaling a sharp reversal in export dynamics. Both flat and long products were affected, with long products showing deeper contraction.

Finished steel shipments declined by 10% year-over-year. Long products plunged 20%, with rebar exports crashing by 49%. Wire and other long categories also saw double-digit losses. Meanwhile, flat products declined 5%, though hot-rolled coil emerged as a rare bright spot with a 9% gain. The collapse in rebar exports was the steepest among all product categories, reflecting shrinking demand from key construction markets.

EU’s top steel export destinations included the UK, US, Turkey, Switzerland, and Egypt, collectively absorbing 60% of all shipments. Export performance varied: the UK posted a 12% rise, while the US fell 18% and Egypt plunged 41%. Notably, shipments to China and Turkey dropped by 17% and 14% respectively, underlining the global nature of the slowdown.

EU Steel Exports Struggle Amid Tariffs and Trade Barriers

The sharp decline in EU steel exports during Q2 marks a significant shift from 2024, when outbound shipments had grown by 4%. However, in 2025, a range of external pressures reversed that trend. Analysts point to soft global demand, intensifying trade disputes, and new US steel tariffs as leading factors behind the drop. These elements are undermining the competitiveness of European steel in key global markets.

Meanwhile, European producers also face growing challenges at home. Real steel consumption fell for the eleventh straight quarter in Q1 2025, down 5.5% year-over-year. Though apparent consumption grew slightly by 2.2%, it failed to compensate for weakening global sales. As a result, EU steelmakers face pressure both domestically and internationally, caught between rising imports at home and falling exports abroad.

Given the current macroeconomic environment, there appears to be little short-term relief. With high energy costs, trade friction, and tepid construction activity worldwide, Europe’s steel sector must now navigate a two-front challenge—a shrinking external market and saturated internal supply.

SuperMetalPrice Commentary:

The 12% drop in EU steel exports marks more than just a quarterly fluctuation—it reflects a structural shift in global steel flows. As new tariffs reshape competitive dynamics and construction demand weakens across continents, EU producers must adapt strategically. Strong performance in hot-rolled coil offers a possible pivot point, but recovery depends on trade policy stabilization and global economic rebound. For now, the outlook remains bearish, and producers may increasingly shift focus toward value-added products or greener steel solutions to protect margins in this tightening export environment.