European steel production is unlikely to reach 2008 level - EUROFER

EUROFER's long-term forecasts do not anticipate a further recovery in market share by increasing steel production in BOF and electric arc furnaces to 2008 levels, at least in this decade. EUROFER believes that the European steel industry cannot ensure a return to pre-crisis levels of steel production when the blast furnaces are phased out soon, as steel imports from China are under strong pressure.

Jeroen Vermeij director of market analysis at EUROFER said that "until 2020, we see no return." He said: “There has been a decline in the price of iron ore and coking coal ore, with more stable scrap prices. In 2014, both industries grew 2.9 percent, however, the ratio of BOF steel rose to 61 percent. up from 58 percent in the previous year.

Steel imports from China continue to be a concern in the region, especially with regard to long products. EU factories are losing their share in the import market and EUROFER does not see any changes in the continuation of the growth trend of Chinese imports. China is responsible for distorting international trade in steel products. Until China admits that it has reached its peak in steel demand while continuing to increase steel production, the global industry will suffer from trade distortions. ”

In 2007, EU blast furnace iron production reached over 116 million tonnes, the highest level since 1998. In 2014, the production of pig iron in the European Union was about 95 million tons.