The European metallurgical sector is undergoing a profound transformation driven by decarbonisation, rising energy costs, and updated EU industrial policy. Today, three key directions define the new market dynamics: the development of Direct Reduced Iron (DRI), the growing use of metallic briquettes made from mill scale, and the modernisation of pig iron production.
According to GMK Center, imports of DRI to the EU decreased by 24.8% year-on-year in January–August 2025, down to 1.44 million tonnes. This reduction mainly reflects lower purchases by the Netherlands and Germany, while Italy and Austria increased demand by more than 30%. DRI remains a cornerstone raw material for “green” steelmaking processes across Europe.
GMK Center – EU reduced DRI imports by 24.8%
At the same time, new research confirms that briquetting mill scale is becoming a practical method of returning metallic waste to production. Using special binders and high-pressure compaction technology, these briquettes demonstrate high strength and durability in blast furnaces and electric arc furnaces.
ScienceDirect – Briquetting of mill scale and metallic residues
As for pig iron, analysts note a trend toward regionalisation — local producers are expanding output to offset reduced imports. Government initiatives supporting the decarbonisation of the metallurgical sector are also stimulating investment in lower-emission blast furnace technologies.
GMK Center – Market insights Europe October 2025
These three directions are interconnected: DRI reduces dependence on coke, briquettes enable circular use of mill scale, and modern pig iron remains the backbone of alloy production. European metallurgy is steadily moving toward closed-loop production cycles where waste becomes a resource, and technology drives sustainable growth.