Real steel consumption in the European Union is forecast to rise by more than five percent in 2011 and by a further four percent in 2012, according to the European Confederation of Iron and Steel Industries (EUROFER).
Real steel consumption in the EU saw a significant acceleration during 2010. Supported by the rebound in manufacturing activity, growth strengthened from -4.1 percent year on year in Q1 2010 to +8.5 percent in the final quarter of the year. On balance, real steel consumption in the EU steel market rose four percent in 2010 as a whole, having registered a 27 percent decline over the 2008-2009 period, the EUROFER data show.
The latest steel market projections from EUROFER's Economic Committee confirm that the recovery in real steel consumption will continue in the years ahead.
According to EUROFER, the outlook for the steel-using sectors in the EU is relatively favourable. Most sectors appear to be well positioned to benefit from overall healthy demand fundamentals in the domestic and export markets. Moreover, prospects for the construction sector in Europe have also become a bit brighter. Having acted as a drag on total steel demand in the 2008-2010 period - particularly affecting consumption of long products such as rebars, sections and wire rods for mesh - a mild recovery in construction activity and consequently in demand for construction steel products is on the cards for 2011 and 2012.