EUROFER said that in the Q1 of 2013, real steel consumption in the EU is estimated to have fallen by 5.7% YoY, even a bit sharper contraction than registered over the whole of 2012. It reflects that business conditions in the end user sectors have remained difficult.

EUROFER said “In addition to the on going weakness in activity of key steel users such as the construction and automotive industry with the SWIP index down by 4% YoY in Q1 2013 also the continued reduction in steel intensity in the EU has a negative impact on final steel consumption.”

EUROFER added “Steel grades and processing and design technologies are continuously being improved, resulting in a more efficient use of stronger yet lighter steel qualities.”

It highlighted “Prospects for the remainder of 2013 are dull. Although activity in the steel using sectors in the EU is seen stabilizing at a low level towards the end of the year, real steel consumption will continue to decline owing to the negative impact of steel intensity, albeit at a less negative YoY rate.”

EUROFER said “All in all, real steel consumption is forecast to decline by just over 3% in 2013.”

It said “The outlook for 2014 shows a very cautious recovery in real steel consumption, on a par with total activity in the steel using sectors gaining some traction over the year. The negative impact of steel intensity is foreseen to soften somewhat. Nevertheless, the expected real steel consumption growth of around 1% contrast sharply with the 8% reduction in consumption registered over the past 2 years.”