The gloomy prospects of the European Steel Market - Eurofer

Despite the fact that a number of economic indicators of the eurozone show, according to the results of the 4th quarter of 2012, some growth, EUROFER 1 experts do not see any prerequisites for the positive development of the situation. This was reported in the press release of this organization.

"The market has become the European Union, it seems, remains stuck in the movement back," the report said.

At the end of 2012, an indicator of the business climate and the purchasing power index in the EU began to improve. In addition, the first signs of the effectiveness of reforms in the most problematic countries of the Eurozone appeared. The European Central Bank seems to have dealt with tension in the financial markets of Spain and Greece, managed to attract funds to the economy of Europe.

However, the CEO of Eurofer, Mr. Gordon Moffat, said that "we expected a more favorable economic environment by the end of the year. The restoration of demand would take a period of time more than the whole of 2013. If it rises, only to the depressive level. With financing and lending is still tight. The deposits of the market will remain difficult to survive the nearest time."

The metal -consuming sectors of the European Union industry, such as auto industry and construction, will continue to reduce consumption in 2013 in connection with the continuation of crisis in the eurozone economy. A small increase in demand for steel is expected no earlier than 2014 in the automotive industry.

The grown indicators of the steel market in Europe at the end of 2012 have purely technical roots and are caused by the usual replenishment of warehouses with metal traders. Nevertheless, there are no manifestations of demand from end customers on the market. Import customers are also in no hurry to buy European steel products.

"The market has become unimportant in 2013. There is a risk of further further falling demand and proposal adjustment. The strengthened euro can attract more imports, although real consumption has become very low," Gordon Moffate emphasized.

Visible steel consumption can begin its growth in the third quarter of 2013, but in the full year it will be only 0.7%. In the future, demand growth in 2014 will be about 3%, predicting Eurofer.

1 EUROFER - the Association of European manufacturers became founded in 1976 and located in Brussels. Its participants produce 100% steel in the EU. Its members are metallurgical companies and national federations in the countries of the European Union (EU). Large steeling companies and national metallurgical federations of Turkey and Switzerland are associated members of Eurofer.