EUROFER: ‘The negative trend in the steel market continues’

The European Steel Association (EUROFER) has released its "Economic and Steel Market Outlook 2024-2025, Fourth Quarter" report, highlighting ongoing challenges in the European steel industry. The report indicates a continued decline in apparent steel consumption, with a 1.3% decrease in the second quarter of 2024, following a 3% drop in the previous quarter. This marks the fourth annual recession in the past five years, underscoring persistent issues such as geopolitical tensions, energy price volatility, and a weakened manufacturing sector.

Key findings

Apparent steel consumption

The EU experienced a 1.3% decline in apparent steel consumption in Q2 2024, continuing the downward trend observed since mid-2022. This will affect the overall 2024 forecast, despite earlier hopes of improved demand.

Domestic deliveries

Reflecting the reduced demand, domestic steel deliveries contracted by 1.7% in Q2 2024, following a 5.6% decrease in the previous quarter. This trend highlights the ongoing challenges faced by European steel producers.

Imports

Steel imports into the EU, including semifinished products, slightly decreased by 1.5% in Q2 2024. Despite the decline, the share of imports relative to apparent consumption remained historically high at 28%, indicating strong competition from non-EU producers.

Steel-using sectors

The Steel Weighted Industrial Production index (SWIP, a proxy for measuring real steel consumption) dropped by 2.1% in Q2 2024, marking the second consecutive quarterly decline. Sectors such as construction and automotive have been particularly affected, contributing to the overall downturn in steel demand.

Outlook

EUROFER projects that apparent steel consumption will experience a moderate recession of 1.8% in 2024, a downward revision from the previous forecast of a 1.4% increase. A modest recovery of 3.8% is anticipated in 2025; however, consumption volumes are expected to remain below pre-pandemic levels. The overall evolution of steel demand remains subject to high uncertainty, influenced by factors such as energy prices, geopolitical tensions, and economic policies.

A united call for action: Europe’s steel sector demands urgent support

These persistent challenges in the steel market have prompted European steel social partners, including EUROFER, to join forces with cross-party Members of the European Parliament (MEPs) in calling for the adoption of an EU Steel Action Plan. Under the rallying cry, “Europe needs steel, and steel needs Europe,” the initiative aims to tackle the urgent issues threatening the sector, including soaring energy costs, fierce competition from non-EU producers, and the pressing need for green transition funding. With industry leaders and workers united in their demands, the coalition warns that without swift and decisive action, the European steel sector faces the risk of irreversible decline.

For a comprehensive analysis, the full report is available on EUROFER's website. 

You could be interested in reading:
wire & Tube India exhibitor list: a dynamic fair quartet for metalworking
A recap of Fastener Fair Italy 2024: exhibitors share feedback
New import restrictions for wire rods in Algeria
Acciaierie d'Italia restarts second blast furnace in Taranto
EU goes ahead with tariffs on Chinese electric vehicles, shaking up automotive supply chain

Picture by Pexels from Pixabay