Real steel consumption in the European Union fell by another 6 percent - Eurofer

The first quarter of 2013 was marked by the next drop in real consumption of steel in the European Union, the EUROFER EU Metallurgical Association says.

The reduction in demand for steel in January 2013 amounted to 5.7 percent in an annual comparison, and this figure is even more than previously expected. The ongoing decline in real consumption of steel products in Europe reflects the fact that the conditions for doing business in final consumption sectors remain complex.

In addition to the weakening of demand from the key consumers of the metal rolling, such as construction and automotive industry, the general metal consumption in the EU falls, which has a negative impact on the final consumption of steel. According to Eurofer, the constantly improved technology for the production of steel and the introduction of new more technological brands leads to a more efficient use and reduction of the weight of steel structures and equipment.

"The prospects for the remaining part of 2013 are not rainbow. Although activity in the sectors consuming steel was stabilized at the end of the last year, its consumption will continue to decline due to the negative impact of quality growth on metal consumption," they say in Eurofer.

According to the forecasts of the Association, the real steel consumption in the European Union will be reduced in 2013 by 3 percent, and the forecasts for 2014 are based on a very careful restoration of real consumption of metal products. Nevertheless, next year, Eurofer expects a one percent increase in steel consumption in the eurozone, against 8 percent of the fall of the recorded over the past two years.