EU increases steel consumption

The conditions of the EU steel market are improving, both on the demand and on the supply side. Finally, the steel mills of the European Union can breathe a sigh of relief. These are the conclusions of Eurofer's (European Steel Producers Association) latest report, which speaks of great stability at the start of 2017 but also asks for caution.

In the fourth quarter of 2016 the steel demand increased by 7.1% over the previous year due to the combined effect of a gain in real steel consumption and a significant steel stocks reduction in service centers. Both imports and domestic deliveries benefited from this rise in demand for the first time in three years: this should be seen as the result of the positive impact of anti-dumping duties on supply conditions in the European steel market.

Preliminary data for the first quarter of 2017 indicate a 2.1% increase in steel consumption compared to previous year. Eurofer also expects EU steel demand to continue to grow at a moderate rate in 2017 and 2018.

Eurofer's General Director Axel Eggert nevertheless preaches calm: anti-dumping duties may temporarily provide comfort but the risk of circumvention and other suppliers stepping up deliveries are around the corner.


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