Apparent steel consumption in the EU fell (-25.5%) year-on-year in the second quarter of 2020, after a drop (-12%) in the first quarter. This was the most severe drop in EU steel consumption ever recorded.

The exceptionally negative trend in steel demand seen in the second quarter of 2020 is – as widely expected – the result of the economic and industrial lockdown in response to the COVID-19 pandemic.

The state of EU and global steel means there is an increased urgency to deal with excess steel capacity worldwide, as this overcapacity will undermine the recovery. In October, national and regional associations and members of the Global Forum on Steel Excess Capacity called on G20 leaders to keep working on a multilateral solution to the problem. EUROFER welcomes continued EU leadership on this issue. Additionally, the EU steel safeguard must be adapted and extended to avoid a resurgence in steel demand being matched by an unhindered flood of dumped imports.

The coming months may prove to be doubly challenging: the resurgence of COVID-19 cases is prompting the reimposition of control measures. Ensuring the effectiveness of public health measures whilst minimising the impact on the economy is a fine balancing act but it is essential because further setbacks will have long-run implications for all sectors and their ambitions for the coming years. EU leaders will have to act decisively to ensure that Europe gets back on track once the pandemic has faded.

In the meantime, stay safe.