Brexit will reduce steel consumption in Europe

According to Eurofer, the impact of Brexit next year will weaken investment activity and thereby reduce demand for steel. Steel consumption in the EU will fall in the second half of this year.

In the second quarter of this year, apparent steel consumption in the European Union grew by 2.3 percent year on year. This was partly due to the need for distributors to replenish stocks, but this phenomenon was quantitatively less than a year ago. Imports remained at the level of the first quarter.

Attempts by the European Commission for anti-dumping proceedings were only able to ensure a reduction in imports in June. It was only a temporary relief. In July and August, imports returned to their higher values ​​recorded since the beginning of the year. September data show the highest level of steel imports to the EU market since October 2015.

Eurofer expects consumption to fall 2.2 percent in the second half of the year. This will partly be due to the use of reserves created in the first half of the year. According to Eurofer on this issue, a small increase in consumption will benefit importers.

In the future, the level of apparent consumption will change, as Brexitu and anti-dumping proceedings will lead to more cautious behavior of investors and the use of stocks and lead to a weakening of economic activity.