European steel sector attracts investment and expects higher year‑end prices

At the Kallanish Europe Steel Markets conference in Vienna, industry executives highlighted that recent EU policy measures – notably the Carbon Border Adjustment Mechanism and a new tariff‑rate quota – are making European steel more attractive for new financing and capacity expansion. GMK Center chief executive Stanislav Zinchenko projected that margins could double by 2027, potentially supporting up to 14 million tonnes of additional flat‑steel capacity from greenfield projects, though high energy costs remain a major competitiveness challenge.

A closing panel forecasted that hot‑rolled coil prices will rise toward the end of the year, with estimates ranging from €700 to €800 per tonne. Analysts linked price movements to inventory rebuilding after the summer break, the pace of capacity re‑activations, and the alignment of scrap prices with steel prices. Concerns were raised that excessive capacity could undermine price gains, while disciplined EU mills might secure modest price improvements.