In the second quarter of the current year, apparent steel consumption in the EU-27 amounted to 40 million tons, increasing by as much as 40.5 percent compared to the same period of 2020 when consumption had been extremely low due to the economic shock caused by the Covid-19 pandemic. However, the forecasts for the last quarter of 2021 and the first quarter of 2022 are increasingly uncertain. This was stated by EUROFER, the association of European steel producers, which recently published its latest economic report entitled "Economic and Steel Market Outlook 2021-2022".
"The strong rebound seen in the first half of the year driven by industry demand has probably reached its peak as growing uncertainty is slowing down recovery”, said Axel Eggert, EUROFER general manager. "Growth in steel-using industries is expected to continue through 2021, however at a more moderate pace because of disruptions in the global supply chain - for example, the semi-conductors shortage in the automotive industry, hikes in energy prices, and the unstable Covid situation," he added.
According to the association, EU steel consumption will grow by about 13 percent in 2021 and by 4.7 percent in 2022 when it is expected to exceed 2017 levels thanks to the mild but continued improvement in activity in steel-using sectors.
Reflecting the continuous improvement in demand, deliveries in the EU market also recorded exceptional growth in terms of volumes in the second quarter of 2021, up 39.6 percent, after the one percent increase recorded in the first quarter.
The data also show a massive increase in steel imports: up 45 percent, while decreases were recorded in the first quarter of 2021 (-2.5 percent), in 2020 (-17.2 percent) and in 2019 (-10.9 percent).
In the second quarter of 2021, production in steel-using sectors grew at an exceptionally high rate (+29.2 percent), marking the second consecutive increase after that recorded in the first quarter (+2.8 percent).
Led by home appliances and automotive, steel-using sectors recorded a robust recovery following the easing of lockdown measures, after an unprecedented decline in production (-25.4 percent) in the second quarter of 2020.
However, as mentioned, EUROFER has predicted that the serious disruptions encountered since July this year in the global supply chain will have a significant impact on the overall outlook for the steel-using industries, at least until the first quarter of 2022. Next year, according to the association, most supply chain problems are expected to ease or even disappear.