Overview of steel use in the EU construction sector - EUROFER

In the first quarter of 2014, activity is growing mainly due to the seasonal effect, but in mid-2014 construction will decline in the EU. The situation is likely to continue until 2015. Since 2015, a growing demand for shopping centers, schools, hospitals is expected.

In the last quarter of 2013, construction activity in the EU fell 0.8 percent YoY, limiting the fall in steel construction production in 2013 to 3 percent.

The first estimates of the construction sector's performance in the first quarter of this year signaled an increase of just over 3 percent over the same period in 2013. This growth is a seasonal effect, which is why the demand for steel products increased.

Meanwhile, Spain, Italy and the Czech Republic continue to record negative YoY growth rates, many in contrast to Germany and the UK, where the seasonal effect is added to additional impulses of other positive trends in production, continue to stagnate.

The outlook for the remainder of 2014 for construction in the EU shows a decline to the bottom of the current quarter and a resumption of positive growth in Q3 2014 after a 7-year period in which total construction activity was reduced by 18 percent.

The improvement in construction investment from 2014 to 2015 will be mainly driven by the residential sector. Continued growth is foreseen for Germany, Great Britain and Sweden. In a number of other countries, activities are expected to remain low. In Poland, activity is forecast to grow by almost 1.5 percent in 2014 and by about 2 percent in 2015.