European industrial sectors show shifts in steel production and coal usage

The European steel industry is showing signs of stabilization following new EU trade measures implemented on July 1. According to EUROFER, crude steel production has recovered by approximately 10 million tons, a move estimated to preserve up to 80,000 jobs across the value chain. Investment decisions totaling at least 3.4 billion euros have been made for 2026, with an additional 2.4 billion euros expected by year-end.

Simultaneously, Europe is seeing a potential resurgence in coal-fired electricity generation. Analysts suggest coal production could increase by up to 25 percent over the next six months as coal-fired plants become more profitable than gas-fired plants. This shift is driven by high natural gas prices, which exceeded 80 euros per megawatt-hour in September, making coal a more competitive fuel despite higher emission costs. While companies like CEZ expect a 9 percent increase in coal-based electricity production, Czech national plans to phase out coal remain unchanged.