European Steel Federation: It is expected that the output of the EU steel consumption industry this year will drop by 12.8 percent year-on-year.
The European Iron and Steel Union (Eurofer, referred to as the European Iron and Steel Union) on August 5 released market forecasts that the output of all steel consuming industries in the EU will fall by 12.8 percent year-on-year in 2020 and rise by 8.9 percent in 2021. However, the European Steel Federation said that due to the "very strong" government support, the steel consumption intensity of the construction industry will drop significantly less than other industries.
For the construction industry, the largest consumption area of the steel industry and also the industry that has been least affected by the epidemic this year in the EU, it is expected that steel consumption this year will account for 35 percent of the EU steel consumption market. The European Union of Steel predicts that the output of the construction industry will fall by 5.3 percent year-on-year in 2020 and rise by 4 percent in 2021.
For the automotive industry, the EUs most severely affected industry this year, steel consumption is expected to account for 18 percent of the EUs steel consumption market this year. The European Union of Steel predicts that the auto industry output will fall by 26 percent year-on-year in 2020 and will rise by 25.3 percent in 2021.
The European Steel Federation predicts that the output of mechanical engineering in 2020 will drop by 13.4 percent year-on-year, accounting for 14 percent of the EU steel consumption market; it will rebound by 6.8 percent in 2021.
In the first quarter of 2020, the output of the EU steel pipe industry fell by 13.3 percent year-on-year, but due to its close ties with the construction industry, it is considered to be flexible. However, the demand for large welded pipes in the oil and gas industry is expected to remain very weak. In 2020, steel consumption in the steel pipe industry will account for 13 percent of the EU steel consumption market. The European Steel Federation predicts that the steel pipe industry output in 2020 will continue the downward trend in 2019, down 19.4 percent year-on-year, and a 9.8 percent rebound in 2021.
The European Union of Steel predicts that the output of household appliances in 2020 will fall by 10.8 percent year-on-year, and will return to 5.7 percent in 2021. In 2020, the steel consumption of this industry will only account for 3 percent of the EU steel consumption market.