It must be noted that EUROFER had earlier estimated steel demand to contract by 1.7% this year.
SEATTLE (Scrap Monster): The European Steel Association (EUROFER) cited continued deterioration of the EU economy, mainly driven by geopolitical and energy crises in the region.
The trade group noted that the steel market outlook has worsened for the second half of the current year and for the entire next year. It expects steel demand to recede by 3.5% in 2022 and by 1.9% in 2023. It must be noted that EUROFER had earlier estimated steel demand to contract by 1.7% this year.
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According to Axel Eggert, Director General, EUROFER, the skyrocketing energy prices have led to excessively high production costs. This has necessitated further dip in apparent steel consumption and notable decline in output by steel consuming sectors. At the same time, the harmful steel imports continues to remain at persistently higher levels, Eggert noted.
The apparent steel consumption recorded a decline by 4.8% in the second quarter of 2022 to total 38.6 million tonnes. The domestic deliveries were impacted by ongoing weak demand from various steel-consuming sectors. The deliveries witnessed 7.1% dip in Q2 this year, in continuation of the negative trend that commenced in the beginning of the year. In contrast, the imports into the EU rose marginally by 1.6% in Q2 this year, after a tremendous surge of 28.5% in the initial quarter of the year.
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