According to Dr. Alexander Siryk, the CEO of Metals Consulting International based in Dusseldorf, Germany, the European Union's steel import market at the beginning of Q1 2025 revealed a nuanced picture of ongoing market developments. The total steel imports, reported under the Tariff Rate Quotas (TRQ) system, amounted to 2.2 million metric tons (Mt). This figure represented an 8% decrease compared to Q4 2024, yet it reflected a 12% increase over the same period in 2024. This uptick from Q1 2024 suggests that the EU steel market is improving after a challenging period in the global economy, with some sectors showing resilience in their demand for imports.
Despite the decline from Q4 2024, the market's overall performance indicates a recovery trajectory, with specific segments such as carbon long products, tubes & pipes, and stainless steel showing strong activity. The developments in each product category offer insights into the shifting dynamics of EU steel consumption and the overall industrial landscape.
Key Market Developments:
1. Carbon Flats:
The carbon flats category, which includes products like Hot-Rolled Coil (HRC), Metal Coated Steel, and Heavy Plates, demonstrated mixed results in Q1 2025.
• Metal Coated Steel: There was a noticeable increase in imports of metal-coated steel, particularly for segments such as galvanized and coated products. These products are crucial for applications in automotive manufacturing, construction, and appliances, where corrosion resistance is paramount. As industries continue to focus on sustainability and durability, this segment remains in demand.
• Heavy Plates: Heavy plates, used extensively in shipbuilding, energy sectors, and heavy machinery, also saw higher import volumes. This increase can be attributed to ongoing projects in these sectors across Europe, where demand for robust materials is steady due to infrastructure projects and industrial production.
However, the Hot-Rolled Coil (HRC) sector showed a significant slowdown in imports. HRC is a primary raw material in the production of various steel products, and its reduced inflow reflects a softening of demand in the EU’s steel-consuming sectors, particularly the automotive and construction industries, where growth may have slowed due to economic uncertainties.
2. Carbon Long Products:
In contrast to carbon flats, the carbon long products segment experienced high import levels in Q1 2025, particularly for products like Merchant Bars, Sections, and Rebars.
• Merchant Bars & Sections: These products are used in the construction of bridges, buildings, and other infrastructural developments. The import surge in these products indicates that Europe’s construction industry remains resilient, driven by urbanization, public infrastructure projects, and building refurbishments. This segment saw solid demand, with an uptick in both industrial and commercial construction activities.
• Rebars: Similarly, Rebars—which are widely used to reinforce concrete structures in construction—saw a significant rise in imports. This growth aligns with the continued development in Europe’s civil engineering and infrastructure sectors, particularly in urban and industrial construction.
The increase in imports in this sector underscores the ongoing need for these products in the construction and infrastructure sectors, indicating a robust demand for long steel products, despite global economic challenges.
3. Tubes & Pipes:
The tubes and pipes segment demonstrated overall growth in imports, with several key categories showing strong performance:
• Gas Pipes: There was a notable increase in imports of gas pipes, reflecting Europe’s ongoing energy infrastructure projects. As nations diversify their energy sources and reinforce their pipeline networks, demand for gas pipes, particularly for natural gas transmission, is expected to remain strong. These projects are crucial in ensuring the stability of energy supply across the continent, and steel pipes play a critical role in this infrastructure.
• Longitudinally Submerged Arc Welded (LDP) Pipes: These pipes, which are primarily used in large-scale applications such as oil and gas pipelines, also saw a growth in imports. The rise in LDP imports reflects global energy demands and investment in energy infrastructure, with projects requiring durable and corrosion-resistant materials to withstand harsh operating conditions.
• Seamless Pipes: Seamless pipes, used in sectors such as oil and gas, aerospace, and automotive, also reported significant growth in imports. Their use in high-pressure and high-temperature applications drives demand in industries where the reliability and strength of materials are critical. The import increase in seamless pipes highlights a growing need for specialized products, as industries seek materials that can meet their rigorous standards.
Overall, the growth in the tubes & pipes sector reflects the broader industrial demands for durable, high-performance materials used in key sectors like energy, transportation, and heavy industry.
4. Stainless Steel Products:
The stainless steel sector also showed strong import activity, particularly in the categories of Cold-Rolled Coils (CRC), Plates, and Seamless Pipes.
• Cold-Rolled Coils: Cold-rolled coils are used in various applications, including the automotive industry, appliances, and construction. The strong demand for CRC in Q1 2025 highlights the ongoing expansion in manufacturing sectors that require high-quality steel for production.
• Plates: Stainless steel plates are essential in demanding applications such as aerospace, heavy machinery, and medical equipment. The strong demand for stainless steel plates reflects industries' need for high-performance materials, which continue to drive the import levels in this product category.
• Seamless Pipes: As in the tubes & pipes category, Seamless Pipes made up a significant portion of stainless steel imports. These pipes, known for their strength and ability to withstand extreme conditions, are critical in industries like oil and gas, chemical, and power generation, where safety and durability are paramount.
The growth in stainless steel imports points to the continued strength of high-end manufacturing industries in Europe, which rely on durable, corrosion-resistant materials for specialized applications.
TRQ Overview:
In Q1 2025, the EU’s total steel imports under the Tariff Rate Quota system reached around 2.2 million metric tons. This figure represents an 8% decrease from the previous quarter (Q4 2024) but a 12% increase from Q1 2024. These changes suggest that while the EU steel import market saw a slight reduction in activity compared to the last quarter, the market is still recovering from previous challenges and is performing better than at the same point last year.
The TRQ system allows the EU to manage steel imports while maintaining a balance between protecting domestic industries and meeting demand for high-quality raw materials. The figures indicate a healthy trade flow and suggest that steel demand is set to remain strong across various sectors in Europe, despite periodic fluctuations in global supply and demand.
Conclusion:
The EU steel import market in Q1 2025 shows a complex but encouraging picture. Although the overall imports were down compared to Q4 2024, the 12% increase compared to Q1 2024 indicates that the market is on an upward trajectory. The strength seen in carbon long products, tubes & pipes, and stainless steel imports reflects ongoing demand from sectors like construction, energy, and manufacturing. These trends suggest that while challenges remain, the EU steel market is poised for further growth in the coming months, supported by both structural and industrial development.
