In the first quarter of this year, UK steel output showed a significant increase on the last quarter of 2010, on the back of the strong performance of manufacturing and the recovery in world economies, according to the latest figures on steel production released today, April 27, by UK Steel, a division of EEF, the Uk manufacturers' organization.
In particular, demand from the automotive and oil & gas sectors was strong, though demand from construction fell away in response to cuts in public sector investment, said UK Steel.
UK steel production in the first quarter of 2011 averaged 188,938 metric tons per week, which was 10 percent higher than in the fourth quarter of 2010, but 4.3 percent lower year on year. However, this latter comparison is distorted by the inclusion of the currently mothballed steel plant at Teesside, which continued to produce through to the middle of February last year.
Ian Rodgers, director of UK Steel, said, "The fact that there is no clear upward trend in UK steel output demonstrates the conflicting developments in the UK and European steel markets. We are continuing to experience good demand from manufacturing industry, and, in particular, from sectors such as automotive and oil & gas. However, demand from construction is very poor, and the sharp fall in public sector investment means that improvements from this sector will be slow and fitful."