European steel industry on the brink of collapse: production hits historic low

The European metallurgical industry is facing its sharpest crisis in decades. According to the results of the first half of 2026, steel production volumes reached a historic minimum, while export figures fell by 20%.

US blow to the market

The key factor behind the sharp decline was the trade conflict with the United States. As reported by the Financial Times, after the US introduced a 50% tariff on steel imports from the European Union, shipments to this market decreased by 29% year-on-year.

Competition from cheaper Asian products

The problems are not limited to North America. European manufacturers have lost market share in other key markets:

• exports to Turkey, India and China have shrunk by at least 18%;
• the cause was the displacement of European products by cheaper offerings from other countries.

The industry is under pressure from three factors simultaneously: high energy costs, US restrictions and a surplus of cheap Chinese steel.

Brussels' reaction and its consequences

To protect domestic production, the EU introduced anti-dumping measures against certain types of Chinese imports. In some cases, the size of such tariffs reaches 90%.

However, experts note that these steps have a counterproductive effect. Chinese steel, having lost direct access to the EU, has shifted to other markets. There, European companies are once again forced to compete with cheap Asian products, which complicates the recovery of the industry.