EUROFER Expects Robust Recovery in Steel Demand

SEATTLE (Scrap Monster): The European Steel Association (EUROFER) spotted signs of recovery from the economic shock caused by the Covid-19 pandemic. The association expects continued recovery growth in EU steel market during the rest of the year.

The EU-28 apparent steel consumption recorded marginal growth by 0.9% in the first quarter of 2021, amounting to 36.3 million tonnes. It must be noted that the consumption had recorded 3.6% year-on-year growth in the last quarter of 2020. In line with improved demand, the domestic steel deliveries in the EU increased b 1%, following growth of 4.6% in Q4 2020.

The data also suggests that imports from third countries continued to decline during the first quarter of 2021, recording ninth consecutive quarter of decline. The imports were down by 5.4% and 2.5% in Q4 2020 and Q1 2021 respectively.

The region witnessed rebound in industrial activity, following easing of Covid-19 related restrictions. The key driver for the faster-than-expected recovery in output was the improved demand from certain sectors, particularly from domestic appliances and automotive sectors. The steel using sectors’ output was up by 2.6% in the first quarter of the year, registering the first quarterly rise since third quarter of 2019.

EUROFER noted that industry activity remains exposed to risks, due to uncertainty around vaccination plans, persistent spread of the virus and fears of new variants of the same.

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