Decline in European real steel consumption slows down to 3.5 percent in Q1

In the first quarter of 2010, the decline in real steel consumption in the European Union slowed down to 3.5 percent year on year, in line with earlier expectations of the downturn in real steel consumption coming to an end in the first half of this year, according to the third quarter report of the ‘Economic and Steel Market Outlook 2010-2011', released by the European Confederation of Iron and Steel Industries (EUROFER).
 
First indications for the second quarter signal that steel consumption should improve from a low level and register the first year-on-year growth following nine consecutive quarters of decline, said EUROFER.
 
The drag of harsh winter conditions affecting construction activity should ease. In combination with manufacturing output gradually gaining further strength, real steel consumption is projected to increase by almost three percent compared with the same period of 2009.
 
In the second half of this year, the improvement in steel market demand fundamentals will continue at a slow but steady rate.
 
All in all, real steel consumption could grow very slightly in 2010, said EUROFER
 
A more solid recovery is projected to take place in 2011, much in line with the activity in the steel using sectors - including the construction sector - gaining traction again. In addition, rising steel intensity should support growth in steel consumption. On balance, real steel consumption could rise by 4-4.5 percent next year. Despite the expected rebound in 2011, a full recovery of EU real steel consumption to pre-crisis levels still appears years away.