EUROFER Anticipates Deepening of Steel Market Negative Trends

SEATTLE (Scrap Monster): According to EUROFER’s latest Economic and Steel Market Outlook, major indicators suggest steeper-than-anticipated downtrend for the European steel market in 2024 and 2025.

The apparent steel consumption is seen deteriorating further. The consumption had witnessed a slump of 3.1% in the first quarter of the current year for a total volume of 31.9 million tonnes. Although moderate quarterly improvements are expected through rest of 2024, the projections for full-year rebound in consumption has been revised downwards from earlier 3.2% to 1.4%. Also, EUROFER now expects the rebound for 2025 to be 4.1%, down from the earlier forecast of 5.6%.

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The apparent steel consumption is forecast to see slower pace of recovery than previously estimated, both in 2024 and 2025. The domestic deliveries had contracted by 5.8% in Q1, whereas the imports continued to increase by 12%.

The output in steel-using sectors, which recorded 1.9% decline in Q1 this year, is projected to witness deeper-than-expected downfall by 1.6%, when compared with earlier estimate of 1%. This is mainly on account of forecasted recession in construction sector, geopolitical tensions and impacts of higher interest rates. Meantime, EUROFER anticipated a 2.3% recovery in output in 2025.