US-based Citibank has stated that European steel industry will recover this year with higher margins, a result of declining raw material prices, according to a report by Reuters. Although steel prices in the region will decrease in the summer traditionally, leading to lower margins, the recovery in the region’s steel industry will strengthen in the remaining months of 2024. In addition, the bank foresees EU’s exports to continue slowing for the rest of the year, contributing to the supply-demand balance. Citibank also stated that some European companies, namely ArcelorMittal, Salzgitter, Aperam and Acerinox will benefit from a potential recovery in the industry.
In addition, the bank expects global steel demand to decline in the short term compared to last year due to expected slowdown in US economic activities, weaker construction industry and general manufacturing. Regarding global steel prices outlook in the short term, the prices are forecast to remain under pressure until demand improved. Meanwhile, mid-term outlook remains positive with long-term demand supported by infrastructure investments.
