Eurofer’s Q4/2010 steel market outlook shows a better than expected second quarter 2010, not only with respect to economic growth but especially to activity in the steel-using sectors.
Robust export activity and stock replenishment in the supply chain fuelled a rebound in the manufacturing sector in the EU.
Despite a further contraction in construction activity, output in the steel-using industries grew almost 7% year-on year.
However, the growth hides diverging trends at the country level. Germany is currently Europe’s powerhouse and most Northern Eurozone countries have benefited from its export success while business situation in southern Europe is still depressed.
As a result, steel market fundamentals gained further strength in quarter 2. Apparent steel consumption grew by 35% compared to Q2/2009.
The outlook for the remainder of 2010 and 2011 is for a continuation of the rising trend in steel consumption.
Abridged from the Eurofer report: ‘Economic and Steel Market Outlook 2010-2011’ available at http://www.eurofer.eu/index.php/eng/content/download/387/2316/file/Market Report-2010-October.pdf