EU steel imports may decline during 2014, says EUROFER

Steel News  |  2013-05-09 04:27:08   |   By

The steel sector activity has started on a weak note in 2013 and the outlook for next year is not that encouraging, says European Steel Association (EUROFER).

LONDON (Scrap Monster) : The steel sector activity has started on a weak note in 2013 and the outlook for next year is not that encouraging, says European Steel Association (EUROFER).

According to the report, the activity in EU’s key steel using industries ended 2012 on a weak note.  The market contraction that was spotted by 2012 second quarter has continued. Total production slipped almost 4% year-on-year.

The uncertainties that surround the sector and the unusual harsh climatic conditions put breaks on production levels. The domestic demand in EU is expected to remain sluggish due to slow pick up in sectors using steel. Increased exports and domestic demand may mark a moderate recovery for the industry in 2014.

The report further states that real steel consumption in the EU is estimated to have fallen by 5.7% y-o-y in the first quarter of 2013. Prospects for the remainder of 2013 are dull. The EUROFER forecasts a decline of around 3% in real steel consumption during 2013. A cautious recovery is what is in the offing for 2014.

Provisional data for EU apparent steel consumption in Q1-2013 show a drop of almost 7.5% compared with Q1-2012. In 2013, apparent steel consumption is expected to decline by around 2%. A reversal of trend is slated for the next year with apparent demand seen rising by around 3% during 2014.

EU steel imports rose by 21% y-o-y in the first quarter of 2013. Imports are estimated to rise by 19% in 2013 and drop by 11% in 2014.

EU steel exports to third countries rose by an estimated 4% y-o-y in the first quarter of 2013. In the whole year 2013, exports are expected to see a reduction compared with the 2012 level. In 2014, total exports are expected to increase more or less in line with the expected improvement in global steel demand fundamentals.