The European Confederation of Iron and Steel Industries (EUROFER) said the steel market outlook for the first quarter of 2011 signals that, despite slowing growth in the second half of 2010, the EU economy is on track for further recovery in 2011-2012.
The two percent GDP growth estimated for 2010 masks significant internal divergences in economic performance, EUROFER said, adding that, while the recovery in
Germany and its northern European
trading partners is on a solid footing, growth in the peripheral countries is hampered by structural weaknesses in the export sector and the negative impact of austerity measures on domestic demand.
According to the organization, the
manufacturing rebound has increasingly replaced stock replenishment as the key driver of steel consumption growth since mid-2010.
EUROFER said, "The EU steel market started 2011 on a positive note. Stocks at end-users and distributors are still assessed as low to normal for the current level of downstream activity. The outlook for real and apparent consumption is for further sustainable growth. Imports are still at reduced levels compared to 2006-2008, albeit on a rising trend for most flat steel products. All in all, the market is expected to remain relatively well balanced for the time being. Real and apparent consumption are foreseen to rise by around four percent per annum in 2011 and 2012."