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Economic and steel market outlook 2020-2021, first quarter
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Apparent steel consumption fell by 3.1% year-on-year in the third quarter of 2019, a slight moderation compared to the drop recorded in the second quarter (-6.7%). The ongoing negative trend in steel demand is the result of the continued slump in EU’s manufacturing sector due to weakened exports and investment that has become more pronounced during the second and third quarter of 2019. Leading indicators suggest that the downturn continued in the remainder of 2019, albeit with some signs of stabilisation. No significant rebound is forecast before the second half of 2020.
The current downturn of the manufacturing sector in the EU is not likely to bottom out in the very short-term. Major risk factors are escalating trade wars between the US and several of its main trading partners (mostly China, despite the trade agreement signed on 15 January 2020 that has eased frictions) and persistent uncertainty regarding the final Brexit deal to be agreed by the end of 2020. These factors are set to weigh on trade conditions during 2020, and may even lead to a further deterioration in business sentiment and seriously
hamper investment growth. In this scenario, the EU steel sector would continue to be severely impacted, also having to cope with growing import distortions as well as persistently high import volatility as a result of the increase in the safeguard quotas and transfer mechanism of unused quarterly quota.
Brussels, 22 March 2024 – The future of a strong and resilient EU can only be forged with steel made in Europe. Europe-made low-carbon steel has a strategic role as it enables a net-zero economy, but today it faces strong headwinds from high energy prices, unfair competition, global overcapacity and growing unilateral carbon costs. The year 2023 has recorded the lowest European crude steel production levels ever, with a number of idled plants and dire impact on workers. Ensuring the enabling conditions for the short-term viability and the decarbonisation of the steel sector urgently needs to be at the top of the EU agenda. This is the message delivered by the European Steel Association together with a number of high-level representatives of the sector on the occasion of the Clean Transition Dialogue on Steel in the presence of the Executive Vice Presidents of the European Commission, Maroš Šefčovič and Margrethe Vestager.
Uses, limits, and realistic potentials of demand-side response from the European steel industry along with a broad set of framework recommendations for an EU policy
Antwerp, 20 February 2024 – Today 73 industry leaders spanning almost 20 industrial sectors presented ‘The Antwerp Declaration for a European Industrial Deal’ to Belgian Prime Minister, Alexander De Croo and Commission President, Ursula von der Leyen. The declaration underlines the commitment of industry to Europe and its transformation and outlines urgent industry needs to make Europe competitive, resilient, and sustainable in the face of dire economic conditions.