The European flat steel coils market is close to rebounding, Antonio Marcegaglia, chairman and CEO of Italian steel group Marcegaglia, has stated at the European Steel Conference taking place in Milan, adding that in the past few months EU-based producers have reduced annualized production by 6 million mt, which will soon have an effect on the market, together with the definitive safeguard measures on imports. The Marcegaglia CEO stated, "I don't think an easy time is ahead of us, but we probably view it more gloomily than it really is".
He went on to say that it is likely that a fiscal stimulus will come from the European Central Bank through the issuance of Eurobonds, and in this event it will be up to national governments to use this money effectively. Marcegaglia said that apparent consumption, which in the past four months or so has been lower than actual demand, has room for recovery and, together with production cuts, should support the market in the coming period.