EUROMETAL, the association of European steel and metals distributors, has recently issued a report focused on the global economy and the steel markets.
EUROMETAL stated that GDP data confirm the significant gap between emerging countries and countries in the West. According to estimates for 2010, GDP in the euro zone will grow by just 1.5 percent year on year, surpassed by Russia with 4.5 percent, the US with 2.6 percent and Japan with 2.9 percent. In the EU, the best results are expected to be those of Germany and Poland, up respectively by 3.3 percent and three percent. Meanwhile, much stronger GDP growth will be seen in countries such as Singapore, up 12.2 percent, China, up 9.9 percent, Taiwan, up 9.2 percent, India, up 8.4 percent, and Brazil, up 7.2 percent - all on year-on-year basis.
In 2010, European apparent steel consumption is expected to post an increase of 19 percent year on year to 139 million metric tons, representing an improvement on EUROMETAL's previous estimate. However, the anticipated apparent steel consumption for the current year is still about 45 million metric tons lower compared to 2008. NAFTA's 2010 apparent steel consumption will increase by 31 percent year on year, while China shows a surprisingly low growth of seven percent.
The improvements in apparent steel consumption conceal a great discrepancy between flat and long products, since coils, strips and plates seem to be performing quite well, pushed by automotive and white goods, while consumption of rebar, beams and structural steel products in general continues to be very weak. This is due to the very sluggish construction sector, still feeling the effects of the deep crisis of 2009.