Eurofer, the European steel industry group, has revised its forecasts for the steel market recovery downward for the third time this year, citing weaker-than-expected demand. General director Axel Eggert highlighted that reduced consumer demand is impacting the sector’s financial health, jeopardizing its investment capabilities.
Eggert emphasized the urgency of significant infrastructure investments needed for Europe’s transition to decarbonization, stating that over €30 billion in capital investment is required by 2030.
After experiencing a 3.1% decline in apparent steel consumption in the first quarter, Eurofer has adjusted its 2024 growth forecast to 1.4%, down from 3.2%, and its 2025 projection to 4.1%, reduced from 5.6%. Apparent steel consumption is calculated based on the output of steel producers, net imports, and net exports.
The association anticipates moderate quarterly improvements in 2024; however, it notes that volumes will likely remain below pre-pandemic levels. The overall outlook for steel demand remains highly uncertain, impacted by a sluggish construction industry and prolonged high-interest rates affecting manufacturing.
Additionally, automotive output has declined by nearly 1%, with expectations of this negative trend continuing throughout the year. European steelmakers, including SSAB and Acerinox, have also issued cautious predictions regarding demand in the latter half of the year.