In the second quarter of this year, real consumption of steel in the European Union decreased by 0.3 percent compared to the corresponding period of the previous year, according to the Economic and Steel Market Outlook 2014-2015/Q4 2014 Report from the Economic Committee of the European Steel Association (EUROFER). Whereas a moderate increase had been expected, the decline was due to weaker-than-expected growth in activity of most steel using sectors, mainly construction and related sectors, while other sectors such as the automotive industry and the steel tube sectors escaped a negative trend in output in the given period. Meanwhile, EUROFER's outlook for the third and the last quarter of this year is for respective 0.1 percent and 0.7 percent year-on-year rises, in line with business conditions remaining soft amid falling sentiment and rising uncertainty levels.
As for the whole of 2014, real steel consumption in the EU is forecast to increase by 1.2 percent, revised down from the previous growth estimate of 2.5 percent, due to geopolitical tensions and a slow EU and global economic recovery dragging down growth in the remainder of the year.
According to EUROFER, EU real steel consumption is forecast to increase by 1.9 percent year on year in 2015, with the activity of steel using sectors is foreseen to gain momentum as the economic recovery in the EU continues its track of modest but gradual growth and the negative impact of uncertainty and weak sentiment wanes. In the EUROFER's previous outlook, EU real steel consumption in 2015 was expected to increase by 2.5 percent year on year.