EUROFER improved its forecast for steel consumption in the EU in 2022

The overall dynamics of steel demand has a high level of uncertainty

The European Steel Association EUROFER has changed its forecast for the consumption of steel products in the European Union in 2022. If in May the association expected a decrease in the consumption of steel products by 1.9%, now – by 1.7%. The recovery in 2023 will be 5.6%.

This is stated in SteelOrbis’ message.

“The overall dynamics of steel demand has a high level of uncertainty. In the second half of 2022, the problems are expected to deepen further due to the consequences of the war between Russia and Ukraine. Thus, steel consumption is expected to decline by 1.7% in 2022, according to the association. The level of uncertainty will remain high until at least the first quarter of 2023, depending on the development of the war, which is currently unpredictable, and its impact on global supply chains,” the statement said.

According to the updated assessment of the association, in the first quarter of 2022, the visible steel consumption in the EU-27 amounted to 37.1 million tons (+6.5% compared to the same period in 2021). EU domestic steel supplies rose by only 0.2% year-on-year in the first quarter, reflecting decreasing in EU demand in the second half of 2021.

As GMK Center reported earlier, in May EUROFER has adjusted its forecast for the consumption of steel products in the European Union in 2022. Compared to the February forecast and the expectation of regional steel consumption growth of 3.2%, the association now expects a decline of 1.9% in May.