In 2011, UK steel output showed a slight increase, as the eurozone crisis and economic uncertainty in the second half of the year affected demand negatively as customers ran down stocks, according to the latest figures on steel production released by UK Steel, a division of EEF, the UK manufacturers' organization.
UK steel production in 2011 averaged 182,298 metric tons per week, which was 0.8 percent higher than in 2010. The extent of the impact of the eurozone crisis towards the end of the year was shown by the fact output in Q4 2011 was 7.7 percent below the previous quarter and down 0.5 percent compared to Q4 in 2010. Q4 2011 was the lowest quarterly steel output since the depth of the recession in Q1 2009 (162,139 metric tons per week).
Ian Rodgers, director of UK Steel, said, " After an improvement in the first half of last year, steel demand could not escape the nervousness in key customer sectors about the strength of both the UK and eurozone economies. However, this low output level is not an accurate indication of the underlying level of consumption. Stocks in supply chains are now at very low levels, and re-stocking in the first quarter is expected to help drive a recovery in steel output."