European Steel Faces 'Bleak' 2013

---

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - The forecast for the European steel industry remains bleak for the coming year according to the organisation representing the European Union's (E.U.) steel industry.

Eurofer, which represents all of the E.U.'s steel companies and national steel federations, said that the sector remains stuck in 'reverse gear' despite some economic indicators improving slightly since last November. For 2012, Eurofer said that real steel consumption in the E.U. dropped by around 5% for the year. Real steel consumption is forecast to decline another 2% in 2013.

"We do expect a more supportive economic environment towards the end of the year," noted Eurofer Director-General, Gordon Moffat. "But it will take most of 2013 before our customers in industry and the steel distribution chain will notice any improvement in business conditions. Confidence may be rising, but only from a depressed level. Financing and credit are still tight. Companies remain highly risk aversive. Steel market conditions will remain difficult for the time being".

The news comes in the same week that the world's largest steel manufacturer, ArcelorMittal (NYSE:MT) (Luxembourg, Luxembourg), announced a freeze on job cuts and restructuring at its European steel operations until June. The company said it will wait until June when the European Commission (E.C.) is expected to launch its Steel Plan to help revive the region's struggling steel sector. For additional information, see February 25, 2013, article - ArcelorMittal 'Freezes' European Job Cuts.

The organisation said that activity in the key steel-using sectors is expected to register a further decline in 2013 due to "difficult operating conditions in the EU", particularly in the construction and automotive sectors. A 'mild rebound' is expected in 2014, in line with the predicted overall economic recovery in the E.U..

Moffat added: "The E.U. steel market in 2013 looks set to remain fragile. There is continued risk of supply and demand distortions. The stronger Euro could attract more imports, even though real steel consumption is to remain subdued".

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.