EU steel tube output down six percent in H1

According to the Economic and Steel Market Outlook 2012-2013/Q4 2012 Report from the Economic Committee of the European Steel Association (EUROFER), the steel total tube output in the European Union decreased by 6.6 percent year on year in the second quarter of this year, bringing the total reduction in steel tube output to almost six percent in the first half of 2012.
 
EUROFER stated that weaker activity in the key client sectors of the steel tube industry such as the construction sector, the automotive industry and the metal goods sector has had a dampening effect on consumption of precision tubes, small and medium-sized welded steel tubes as well as hollow sections. Lower demand combined with credit and liquidity issues has resulted in stock-holders keeping inventories as low as possible.
 
Acording to EUROFER, activity in the main steel tube using sectors is expected to remain under pressure until at least mid-2013 and any improvement in the second half will be slow and gradual and mainly supported by improving business conditions in export markets rather than the EU domestic market. EU steel tube production is forecast to decrease by around four percent in 2012.