European association of steel and other metals distributors and service centers (EUROMETAL) has recently released a report on the performance of economy and global steel markets.
The data regarding the change in GDP from 2005 to 2011 in the euro area highlights significant differences among countries. The performance of Slovakia stands out above all, with a +30.1%, followed by Luxembourg (+17.2%), Malta (+14.7%) and Cyprus (+14.4%), while among the weakest countries there are Ireland (-1.2%), Italy (-1%), Greece (unchanged) and Portugal (+0.4%). Germany performed well, with a +8.6%, while the GDP of France and Spain was up 5.6% and 5.3% respectively.
In 2005-2011, the European industrial production showed a very heterogeneous picture as well. Slovakia was in the lead again (+43.3%), followed by Belgium (+14.2%), Austria (+9.4%) and Ireland (+9.3%); in the bottom of the list there are Spain (-16.6%), Greece (-16.1%), Italy (-11.4%), Luxembourg (-10.1%) and France (-7.8%). Germany did well again, with a 4.2% increase.
Focusing on 2011 only, global GDP is estimated to grow by 4.3%, but the world is growing with different intensity depending on the different macro-regions: advanced economies, held back by low consumer confidence, fiscal tightening and government debt, will grow only by 2.2% this year, while emerging countries will grow by 6.5%. In detail, the healthiest countries are China (+9%), followed by India (+8.6%), Argentina, Chile, Indonesia and Turkey (all above 6%). A second group consists of the countries of Central-Eastern Europe and North America: Germany (+3.4%), Poland (+4.2%), Russia (+4.2%), Slovakia (+3.5%), United States (+2.5%) and Canada (+2.9%). Western Europe and Japan grew within limits: -0.6% for the latter, +0.9% for Italy, +0.7% for Spain, +1.5% for the United Kingdom, +2.1% for France. The figure for the 17 European countries was up 1.9%.
Speaking of steel, in 2011 EUROMETAL expects an apparent steel consumption of 157 million mt in the EU-27, up 8% compared with last-year 145 million mt, but still behind the pre-crisis levels (the peak was reached in 2007, with 184 million mt). As for the European production of crude steel, in the first 5 months of this year it was up 4% over the same period of 2010. The figure has to be compared with the 6% increase of the CIS area and the 23% of Turkey, direct competitor of Europe in the Mediterranean.
In the report by EUROMETAL, it emerges once again that the long steel segment is struggling more than any other to come out definitively from the crisis. In the first 5 months of 2011 the output of the European construction sector has declined 1% year on year, while the sales of rebar, beams and profiles distributors were up 7%, though this progress is largely attributable to restocking activities. The situation is far better in the flat steel market: in January-May 2011, service centers' sales increased by 14% year on year, in line with the increase in orders in the mechanical, automotive, appliance, construction and equipment industries.