Apparent steel consumption in the EU fell by 11.6 percent year on year in the third quarter last year, declining for the seventh consecutive quarter, and amounting to 32.8 million mt, following a drop of 25 percent in the second quarter, according to the European Steel Association’s (EUROFER) latest Economic and Market Outlook. Although the volume was higher than the record low seen in the second quarter, it reflects the unprecedented deterioration in steel demand due to the severe disruption brought by the coronavirus pandemic.
“2020 is likely to be one of the worst years on record, even if we will see positive figures in the fourth quarter,” Axel Eggert, director general of EUROFER, said.
The EUROFER report stated that the shutdown measures that began in March 2020 severely impacted manufacturing activity and steel-using industrial sectors. However, some of the measures that had the greatest impact on the economy were loosened as of June 2020, though many measures remain in effect or have been reinforced in recent months.
“The EU should use this crisis as an opportunity to use the recovery fund to support industry in meeting its decarbonisation ambitions - starting with sectors such as steel, that have already shown how they can help support the aim,” Mr. Eggert said.
In the third quarter of 2020, output in EU steel-using sectors rebounded compared to the previous quarter in which the total output fell by 24.4 percent, but has nevertheless fallen by 6.4 percent year on year. The downturn in steel demand led domestic deliveries in the EU to fall by eight percent in the third quarter, declining for the eighth consecutive quarter year on year, following a decline of 28.1 percent in the second quarter.
After the severe drop of 16.8 percent in the second quarter of 2020, the downward trend in imports continued in the third quarter, with a more severe year-on-year fall of 25.4 percent, declining by more than 10 percent quarter on quarter for the fourth consecutive quarter.