According to the Economic and Steel Market Outlook 2024-2025/Q2 2024 Report from the Economic Committee of the European Steel Association (EUROFER), in the fourth quarter of 2023 apparent steel consumption in the EU-27 increased by 2.8 percent year on year after sixth consecutive drops to 29.9 million mt, the fourth-lowest level since the start of the pandemic in the second quarter of 2020. In the previous quarter, apparent steel consumption had fallen by 5.7 percent year on year.
The association stated that in 2023 negative factors impacted apparent steel consumption in the EU-27, causing it to contract even further, by nine percent, compared to the previous forecast of 6.3 percent. This represented the fourth annual recession in the past five years. However, in 2024, apparent steel consumption is set to recover at a slower rate of 3.2 percent, compared to the 5.6 percent increase in the previous guidance, conditional on more favorable developments in the market outlook and an improvement in steel demand.
Steel demand remains subject to very high uncertainty. It is anticipated that quarterly positive developments in apparent steel consumption will continue over the first quarters of 2024, albeit resulting in volumes still below pre-pandemic levels.
In the fourth quarter, the output of steel-using sectors increased by 0.2 percent year on year. The output of steel-using sectors continued to grow, albeit at a slower rate, despite the impact of Russia’s invasion of Ukraine, the weakness in manufacturing industries, geopolitical tensions and above-average energy prices.
In addition, domestic deliveries in the EU increased by 1.3 percent year on year in the given quarter, after seven consecutive declines.