EU Steel Orders Yet to Retrace Pre-Pandemic Levels

SEATTLE (Scrap Monster): The European Steel Association (EUROFER) noted that steel orders in the EU are not yet back to pre-pandemic level, despite strong rebound in the automotive sector. The orders, which rebounded in Q3 and Q4 of 2020 as well as in Q1 2021, failed to touch the levels before the pandemic.

According to Alessandro Sciamarelli, Director-Market Analysis, EUROFER, the steel consumption in the EU region continues to linger at low levels in historic levels. The apparent steel consumption has been on a declining trend since early 2019, even before the pandemic, he noted.

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The real steel consumption in the EU, at 36.3 million mt, recorded a decline by 10.4% in 2020, compared to 2019 levels, mainly due to impacts of the pandemic. This is set to rebound by 7.7% in 2021 and 4% in 2022. The automotive sector is projected as the main driver of the growth, rising by 15.9% and 4.2% in 2021 and 2022 respectively.

The market share of steel imports in the EU has not decreased in historical terms, mainly due to lack of recovery in steel production by the EU countries. However, in tonnage terms, the imports posted a decline by 18% to around 23 million mt. It must be noted that the steel imports by the region had slumped 12% in 2019 as well.