EU steel market reports stable growth in 2017

A report from the European Association of Steel Producers (EUROFER) showed the growth of the EU steel market since 2017. Regional conditions have improved significantly. The data shows higher productivity in the region's steel mills. However, the trade organization warns of the negative impact of imports in the coming months.

CEO Axel Eggert has warned the EU regional administration to guarantee the volume of imports from third countries. The imposed anti-dumping duties could provide temporary relief, but preserve unfair trade and pose a greater threat to the EU steel market balance.

EU steel consumption increased 2.1% year-on-year in the first quarter of 2017. Meanwhile, the EU region's steel trade deficit widened significantly during the first months of 2017. Imports of flat products have increased, especially coated coils. The average monthly shortage of flat products was 741,000 tonnes.

Steel production grew by almost 2.5% year-on-year in Q1 2017, which is in line with positive trends in the industrial sector. The growth in production was mainly driven by increased demand from the automotive industry. The production of metal products and steel pipes has also expanded. The construction and engineering industries reported moderate improvement when compared to the corresponding period last year.

EUROFER forecasts growth in steel demand in the EU in 2017 and 2018. The association forecasts solid domestic demand and improved exports over the course of the current year. Total steel use activity is likely to grow by more than 2% in 2017 and 2018.