The leaders of the steel industry, met this week in Paris for the summit World Steel face a declining demand in Europe. The closure of several facilities responding to a desire to stem the fall in prices than a sharp drop in demand.

The recent measures taken in the European steel industry are sadly echoed a fall 2008 marked a sharp fall in order books and a drastic reduction in capacity. Since three years ago, ArcelorMittal is the movement that began, with its mothballed blast furnace in Liège, and Florange Eisenhüttenstadt, a decision of serious social tensions there. The world's number one steel then announced the suspension of production of certain product lines long in Madrid and in its steel mills and Schifflange Rodange in Luxembourg. And its major European competitors have followed. TATA Steel has closed one of its four blast furnaces in Europe. Salzgitter has announced a 10% drop in volumes of steel plates. ThyssenKrupp wants to reduce its production of 500,000 tonnes.

Is this a response to falling demand due to uncertainty about European sovereign debt or a simple adjustment capacity to stem falling prices? This is one of the issues discussed at the World Steel High Mass being held this week in Paris.

The current concerns are that the rebound in demand after the summer break did not occur this year. Yet experts say that the current situation is not comparable with that of 2008.

Mr Marcel Genet, chief of staff at Laplace Council, said that "The capacity reductions among steelmakers, important but less severe than in 2008, show the contrary they are trying to anticipate a possible decline in demand for the beginning of 2012, to avoid such drastic measures as in the previous crisis."

The price of steel coil fell 17% in Europe since its peak in February, which will among steelmakers to limit production.

Analysts at JPMorgan, ArcelorMittal's strategy is rather to optimize the production a capitulation to a lower demand for steel. Moreover, about the direction in his last presentation to investors do not seem alarming. Demand remains at a high level in the United States with signs of a slowdown in Europe.

According to Fitch analysts, the flexibility in production should allow the European steel producers to maintain profitability despite lower prices. They said that "The situation of the sector is much better than in 2008-09. Corporate balance sheets are stronger, the maturity of their debt is longer and higher level of cash."