Economic recovery in Europe will gain momentum this year, reports Eurofer.
The European steel trade body says in its new report that although progress will be slow and surrounded byuncertainties, there is less risk now than a year ago.
Its report Economic and Steel Market Outlook 2010-2011 states output in the steel-using sectors will rise 0.6% in 2010. A further strengthening is expected for 2011 with growth accelerating to 3.5-4%.
Orders and deliveries have risen in recent months compared with the depressed levels registered in the final months of 2008 and 1st half of 2009. Low imports and reduced levels of domestic supply have resulted in supply currently being much better aligned with weak demand levels. Apparent consumption is estimated to have fallen by almost 35% in the whole of 2009.
Low inventories at the start of 2010 will support the market in gaining strength this year. Any further improvement in demand side fundamentals should trigger a corresponding need to replenish inventories from their current low levels. This will provide the major boost to the 12.5% rise in apparent consumption expected in 2010.
For the full report, visit www.eurofer.org and follow the links.