EU steel market prospects improve in 2017

A strong start to the year, a robust steel market and economic growth predict good conditions for EU sales. However, increased protectionism could lead to the proliferation of catastrophic distortions in the global trade flow.

EU Steel Market

Steel consumption in the EU increased by 3.1% compared to the same period last year, driven by steady growth in end-user consumption. The net impact of inventory accumulation is negative, albeit not significant, as the actual increase in inventory was lower than in the same period in 2016.

Domestic suppliers of the EU, as well as third-party exporting countries, have felt an increase in demand for steel in the EU. The improved balance of the basic principles of supply in the market by the EU countries is largely attributable to the positive impact of anti-dumping duties on the containment of dumped imports.

Axel Eggert, CEO of the European Steel Association (EUROFER), said: “Baseline data and estimates for the second quarter show that steel consumption remained in a moderately positive growth trend. However, the rather sharp rise in imports in the April-May period suggests that EU factories are likely to have again strengthened the ground for third-country suppliers. "

Steel consumption in the EU is expected to continue to improve throughout the remainder of 2017, although the seasonal decline will negatively impact consumption growth in the last quarter of the year. In 2017, EU steel consumption is projected to increase by 1.9%. Steel demand is expected to grow moderately in 2018, in line with a slowdown in real consumption growth.