According to the Economic and Steel Market Outlook 2022-2023/Q2 2022 Report from the Economic Committee of the European Steel Association (EUROFER), in the fourth quarter of 2021 apparent steel consumption in the EU-27 amounted to 36.3 million mt, increasing by 9.5 percent compared to the same period of 2020, after an increase of 14.3 percent in the third quarter due to the impact of severe supply chain issues and rising energy prices. Steel consumption strongly rebounded in 2021 by 15.2 percent, after the deep slump of 10.7 percent experienced in 2020 caused by the pandemic.
According to the association, EU steel consumption will contract by 1.9 percent in 2022 amid soaring energy prices, ongoing disruptions in global supply chains, and the effects of the war in Ukraine, followed by a recovery of 5.1 percent in 2023.
The output of steel-using sectors in 2021 rebounded by 7.3 percent after an 8.4 percent decrease in 2020, while the output of steel-using sectors in the fourth quarter increased by 0.7 percent year on year. EUROFER expects the output of steel-using sectors to increase by two percent in 2022 and by 2.3 percent in 2023.
Domestic deliveries in the EU rose by only 0.6 percent year on year in the fourth quarter, reflecting the slowdown in demand within the EU over the second half of 2021. In 2021, deliveries in the EU recovered by 10.7 percent.
In addition, in the given quarter EU steel imports rose by 43 percent year on year, following a 48 percent rise in the third quarter. In the full year, the EU steel imports rose significantly by 32 percent, after a 17.1 percent drop in 2020.