STEEL NEWS

EUROFER on the ongoing recovery of the EU steel market

As reported by the European Steel Association EUROFER, apparent steel consumption in the EU-28 increased by 3.6% compared to the same period last year in the fourth quarter of 2020, which was the first quarterly growth since the fourth quarter of 2019, as in the first quarter of 2021 (+ 0.9%). Apparent steel consumption in the first quarter was 36.3 million tonnes. These are further signs of recovery from the economic shock caused by the COVID-19 pandemic.

“While the overall economic recovery in the EU seems uneven and risk-prone, the recovery in the steel industries and steel demand should continue until the end of 2021,” said Axel Eggert, CEO of the European Association of Steel Producers (EUROFER). "This is due to a stronger-than-expected recovery in industrial sectors, whose production volumes are recovering from losses suffered during the pandemic."

Reflecting improved demand, EU domestic shipments increased 1% in the first quarter of 2021, following a 4.6% increase recorded in the fourth quarter of 2020.

The data for the first quarter also showed a continuing decline in imports from third countries compared to apparent consumption. After a record drop (-25.4%) in the third quarter of 2020, imports from third countries fell, albeit less severely, also in the fourth quarter of 2020 (-5.4%) and in the first quarter of 2021 (-2.5 %), that is, the ninth fall in a row in a quarter.

Industry in the EU has recovered production losses during the pandemic, but operations remain fragile and risky due to ongoing uncertainty about vaccination plans and the current impact of the pandemic.