The European Steel Association (EUROFER) has stated that the EU steel market is expected to continue to slow down in the first quarter of the current year, despite several economic indicators edging up since November 2012.
"We do expect a more supportive economic environment towards the end of the year. But it will take most of 2013 before our customers in industry and the steel distribution chain will notice any improvement in business conditions. Confidence may be rising, but only from a depressed level. Financing and credit are still tight. Companies remain highly risk aversive. Steel market conditions will remain difficult for the time being," said EUROFER director general Gordon Moffat.
According to EUROFER, activity in the steel using sectors is expected to register a further decline in 2013 due to the continuation of difficult operating conditions in the EU, particularly in construction and automotive. A mild rebound is likely to occur in 2014, in line with the expected economic recovery in the EU.
EUROFER pointed out that the market steel will continue to lack any positive demand impulses from end-users until the final quarter of 2013. Imports are seen remaining at a reduced level, but will not drop any further. Apparent steel consumption will fall again slightly in 2013, before improving in 2014.
