According to the short range outlook of the World Steel Association (worldsteel), steel demand in the European Union (EU) is expected to contract further by 0.5 percent in 2013, well below the 2.4 percent growth which had been forecast in October 2012. In 2014, European steel demand will increase by 3.3 percent to 144.1 million mt.
In 2012, the lingering uncertainties associated with the euro crisis continued to weigh heavily on economic activities in the EU, especially during the last quarter of the year. As a result, apparent steel consumption in 2012 fell 9.3 percent with a widening gap seen at the country level.
In particular, in Italy and Spain, apparent steel consumption contracted by more than 18 percent in 2012. Worldsteel indicated that, with signs of stabilization in the economic situation, a recovery is expected late 2013, but the economic prospects for the region remain weak.
According to the worldsteel short range outlook, EU's GDP will remain unchanged in 2013 and a 1.5 percent increase is expected in 2014.