According to a market review published on May 5, 2026, the EU scrap sector remained under pressure from weak steel demand throughout 2025, yet showed signs of recovery from the previous year's downturn. While scrap demand is declining alongside steel output, the "green transition" and the growth of electric arc furnace (EAF) metallurgy provide long-term structural support. For industrial companies, this is a key indicator of future raw material balances, export flows, and the European competitive landscape.
Balance of Collection, Consumption, and Prices in the EU
By the end of 2025, scrap demand in the European Union decreased by 2.6% year-on-year to approximately 74.7 million tons. This trend mirrors the 2.6% drop in regional steel output, which fell to 126.2 million tons. Meanwhile, scrap collection decreased more slowly—by 1.6% to 86.2 million tons—maintaining a supply surplus in the market.
A key factor in weak domestic demand remains the underutilization of electric arc furnaces. With EAF capacity around 78 million tons, actual usage is still below potential, limiting internal scrap consumption. In the short term, this continues to pressure prices and push volumes toward export markets.
The average price for E3 scrap in the EU in 2025 was €303.8 per ton, a 10.8% decrease from the previous year. However, current price levels remain significantly higher than the 2016-2020 averages, confirming that scrap metal maintains its strategic role in decarbonizing the steel industry despite cyclical downturns.
Export Flows and Impact on the Metal Market
The gap between collection and consumption supports EU export activity. In 2025, scrap exports to third countries grew by 4.4% to 16.31 million tons, while imports into the EU rose by 1.2% to 4.8 million tons. Thus, the region maintains its status as a net exporter with net exports of about 11.7 million tons.
Turkey remains the largest external buyer, importing 10.78 million tons and accounting for over 65% of EU exports. Egypt showed the fastest growth among key importers, increasing purchases to 1.83 million tons. Conversely, India and Pakistan reduced imports, indicating uneven demand for raw materials across different regions.
For companies dealing with rolled metal and raw material procurement, this market structure implies increased sensitivity to price fluctuations and logistical changes. In this context, winox.ua, as a supplier of rolled metal and industrial solutions, remains a vital partner for businesses, ensuring reliable supplies and predictable terms even in volatile market conditions. This is particularly relevant for manufacturers planning purchases amidst European metallurgy's shift toward more resource-efficient models.
What These Trends Mean for the Medium-Term Perspective
In the short term, the EU scrap market remains dependent on the recovery rate of steel production. If EAF utilization remains limited, internal demand will grow slowly, and exports will serve as a balancing mechanism. This will maintain competition between domestic consumers and foreign buyers for high-quality raw materials.
In the medium to long term, the situation shifts toward growing demand within the European Union. Expanding EAF capacity and the implementation of climate policies will gradually increase the need for scrap as a primary raw material for low-carbon steel production. Consequently, the region's export potential may decrease, and the struggle for access to quality metal resources could intensify.
For industrial businesses, this means the need for more careful procurement planning, supply risk assessment, and diversification of metal sourcing channels. Scrap market analytics is already becoming an essential tool for companies in manufacturing, metalworking, and infrastructure projects. Therefore, changes in the EU scrap balance matter not only to steelmakers but to the entire metal product supply chain.