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Europe Steel Market Outlook: Positive Trends Amid Stable Scrap and Coal Exports

In Europe, recent developments indicate a very positive sentiment within the steel market, particularly driven by stability in scrap exports and increased coal shipments. The article Scrap exports from Germany remained stable in early 2026 indicates that Germany’s scrap exports totaling 1.26 million tons support consistent activity across steel plants. Moreover, satellite observations reveal a notable increase in operational levels at various plants, particularly following shifts in demand underscored by these developments.

Bar chart and satellite map of steel production activity in Europe

The Outokumpu Tornio steel plant in Finland saw an improvement in activity from 17% in March to 27% in April, maintaining a steady activity of 30% in May, consistent with stable scrap exports from Germany. This connection aligns well with the increased demand from electric arc furnace steelmakers as indicated in the news.

The SSAB Raahe steel plant, also in Finland, reported activity levels holding at 43% through April and May, which suggests resilience despite broader market fluctuations. Its integrated production process may be benefiting from the stability of local scrap supply.

In contrast, the ArcelorMittal Sestao steel plant in Spain shows an activity peak of 47% in November 2025, declining to 30% by April 2026, which may relate to shifts in market demand, notably for hot rolled products as Turkey’s HRC exports decreased, as per the news article “Turkey’s HRC exports decrease by 15.2 percent in Jan-Mar 2026.” This dip may reflect a broader slowdown in demand from traditional markets now favoring new destinations.

Evaluated Market Implications

Given the consistent scrap activity in Germany, buyers can strategically source local recycled materials to mitigate future price volatility. However, watchful monitoring of Turkey’s evolving export landscapes is recommended due to potential supply disruptions resulting from shifting demand patterns.

For procurement recommendations:
Outokumpu Tornio: Leverage increasing crude and semi-finished production capabilities given the stability in sourcing scrap.
SSAB Raahe: Consider securing contracts for long-term supply agreements based on current production capacity and stable activity rates.
ArcelorMittal Sestao: Evaluate alternative sourcing strategies due to declining operational activity, especially if market dynamics continue to shift.

Staying proactive and responsive to regional supply chains while monitoring geopolitical factors will be crucial in ensuring competitive procurement practices.