EU apparent steel consumption grew 5.7 percent year on year in the fourth quarter of 2015, while year-on-year growth in apparent demand outpaced growth in real consumption, according to the Economic and Steel Market Outlook 2016-2017/Q2 2016 Report from the Economic Committee of the European Steel Association (EUROFER).
The outlook for the EU steel market in 2016 is overcast. Muted real steel consumption growth and the stock overhang at the start of the year will result in apparent steel consumption stabilizing around the level of the previous year, EUROFER noted. Trade data for the first quarter of 2016 signals a further year-on-year rise in imports, stoking concern of another year of market distortions and EU producers losing further market share. In spite of the apparent improvement in global steel market conditions in recent weeks, downward risks continue to be high as the fundamental supply-demand imbalances in the world and in particular in China have not changed structurally.
According to EUROFER, apparent steel demand is forecast to grow in 2017, albeit mildly, supported by a more pronounced rise in real steel consumption which is expected to stand at 2.5 percent.