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Try the Free AI Search EngineNeutral Market Sentiment in European Steel Industry: Scrap Imports Rise Amid Production Challenges
Recent developments in Europe’s steel market indicate a neutral sentiment, primarily influenced by a significant increase in Ukrainian scrap exports and challenges in maintaining production levels. The news articles “Scrap exports from Ukraine increased by 45% y/y over 11 months“ and “Ukraine’s Scrap Exports Rise by 45% In January–November 2025“ highlight how Ukraine’s surge in scrap exports is driven by high global prices, despite domestic procurement challenges. These trends reflect on the activity levels observed in European steel plants, which show varying responses to these developments.
The observed activity shows that the mean steelplant activity in Europe remains relatively stable, with a decline from a peak of 40.78% in July to 27.18% in October 2025. Notably, AG der Dillinger Hüttenwerke in Germany recorded a rise to 39.0% in October, reflecting a potential operational improvement that stands out against declining trends in other plants like the Diósgyőr Steelworks, which dropped significantly to 8.0% in September.
At the Uralwagonsawod steel plant, activity decreased marginally from 39.0% in July to 33.0% by October, indicating stable but insufficient growth to capitalize on export opportunities from Ukraine. The production-level forecast outlined in the article “The volume of steel production in Ukraine in 2026 may correspond to the level of 2025: GMK“ suggests a stagnation that could directly affect European supplier confidence and pricing.
The implications for the market include potential supply disruptions, particularly in regions reliant on Ukrainian scrap. Given the reported forecast for Ukrainian production and the expected government export restrictions, procurement professionals should evaluate their supply chains critically. Immediate considerations include:
- Diversifying sources: Steel buyers may need to look beyond Ukrainian scrap to mitigate risks of localized shortages, especially if regulations tighten as anticipated from 2026.
- Monitoring production capacity: A thorough understanding of which plants are functioning optimally, like AG der Dillinger, can inform strategic partnerships. Their production levels rose satisfactorily, positioning them well against the backdrop of potential Ukrainian supply issues.
- Maintaining flexibility: Anticipating fluctuations in scrap availability will be crucial; hence, establishing flexible procurement contracts may provide a buffer against rising material costs from emerging supply constraints.
In summary, steel buyers should prepare for a diverse procurement strategy to navigate the evolving landscape influenced by Ukrainian scrap exports and the stability of production within Europe.