The latest economic surveys show that following a weakening trend in the third quarter most indicators stabilized lately, according to the European Steel Association (EUROFER). EUROFER foresees for 2015 continued but slow growth, although the outlook remains vulnerable to downside risks such as an escalation of the conflict in Ukraine, slow growth in the emerging world, and persisting weakness in France and Italy.
EUROFER said that a €315 billion investment plan in the EU over the coming three years, a significant part of which is to be earmarked for infrastructure investment, could potentially boost civil engineering projects and as a consequence also constructional steel demand.
On the other hand, prospects for the steel using sectors are moderately positive, which underpins the expectation of a modest rise in real steel consumption in 2015.
Following the usual year-end destocking, steel buyers will have to return to the market in early 2015, with actual weather conditions being the wild card for market conditions. EUROFER also warned that uncertainty about raw material price trends could also lead to steel buyers holding their breath and ordering only for immediate needs.
"More stability in the steel market would be beneficial to both producers and consumers. China reducing its steel output in line with weaker domestic demand would be a major step forward to improve global steel market fundamentals,",said EUROFER general director Axel Eggert.