EU expects steel consumption to rise in 2017 and 2018

The Economic Committee within the European Association of Steel Producers (EUROFER) predicts that the European economy will continue its growth trend in 2017. He expects an increase in growth in construction activity in 2017. In addition, commodity prices are likely to continue to rise throughout the year.

Overall activity in the use of steel products recorded a slight increase of 1.8% in 2016. Activities in sectors such as transportation and automotive equipment continue to expand at a healthy pace. Eurofer forecasts moderately positive outlooks for 2017 and 2018 and growth of 1.1%, 2% per annum, respectively. Construction volumes are projected to grow by 2.1% in 2017, followed by an accelerated growth of 2.8% in 2018.

Pipe production in the EU region increased by almost 1.9% in 2016 and is forecast to grow by 1.4% in 2017 and 2018. During 2016, the EU region reported 2.9% year-on-year growth in real steel consumption. Real EU steel consumption is projected to increase by 1.3% in 2017 and 1.4% in 2018.

Total steel imports in the EU region from third countries grew by 9.2% in 2016, reaching the highest annual level since 2007, when total imports of finished steel products increased by 10% in a year. The main exporters of flat products to the EU during the year were China, Russia and South Korea. The main exporters of varietal products were Turkey, Russia and Ukraine. In addition, the region's total steel exports to third countries recorded an 11% decline during 2016.