14 October 2025 – Most European primary steel producers have already abandoned the idea of green steel production, effectively calling the EU Green Deal into question. Now, a Swedish project to produce “sustainable” green steel may also be in financial trouble. Meanwhile, worldsteel predicts a significant rise in steel demand in Europe for 2026.
Is Sweden’s green steel mill facing collapse?
New steel mills in Europe are a rarity – most existing facilities are several decades old and have long since fallen behind the global technological frontier.
In northern Sweden, the start-up Stegra (formerly H2 Green Steel) is building a steel mill dedicated to the production of “sustainable” steel. However, several media outlets, citing a report by the Financial Times (FT), claim that the company may be facing acute financial distress, with internal discussions about a possible insolvency reportedly already taking place. The company has denied the FT’s report, calling its portrayal “one-sided.”
Primary steel producers lose interest in green steel
If true, Stegra’s financial troubles would place it alongside several other European primary steel producers that have put their green steel ambitions on hold or indefinitely postponed their projects.
EU Green Deal has failed
Regardless of whether the reports are accurate, Stegra’s difficulties highlight a broader pattern: economies driven by ideological rather than rational decisions rarely create value. The EU Green Deal – and its bureaucratic excesses driven by political dogma from Brussels – should be viewed in this context and brought to an immediate end. Not reformed. Not adjusted. Ended. And if necessary, perhaps Europe could borrow a chainsaw from Argentina’s President Javier Milei to get it done.
Europe: worldsteel forecasts strong demand growth for 2026
In its October 2025 Short Range Outlook, the World Steel Association (worldsteel) predicts a significant recovery in steel demand in Europe for 2026. After a modest increase of 1.3 % in 2025, analysts expect demand to rebound by up to 3.2 % in 2026.
worldsteel writes: “The long-awaited return of steel demand growth in the EU reflects the impact of increased infrastructure and defence spending on the continent, combined with improving macroeconomic conditions such as lower inflation, easier credit conditions, and rising real household income.”
European businesses rely on having access to steel products at competitive prices
We strongly assert that this expected recovery in steel demand must not be stifled by new, excessive trade protection measures from Brussels. As the European Commission itself stated back in 2021: “European businesses rely on having access to steel products at competitive prices in order to be able to compete, even globally.”
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