The European steel sector is projected to grow by 5.6% this year, a forecast that sits two percentage points lower than earlier projections. The modification follows Eurofer, the industry association, which notes that steel‑consuming industries were expected to lift their output by only about 0.2% in the same period. This sets a more modest path for the sector in the near term, reflecting a market that is still finding its footing after recent volatility. — attribution: Eurofer
As a result, the steel industry body cautions that the anticipated rebound in the market for 2024 will likely proceed at a slower pace, with less pronounced gains than previously imagined. This tempered outlook underscores ongoing headwinds in demand and the need for careful planning across the value chain. — attribution: Eurofer
The situation is already translating into concrete decisions at the regional level. In Asturias, ArcelorMittal is preparing to respond to incoming orders and visible demand signals in the coming weeks. Depending on how orders evolve and the data on demand evolves, the company may decide to suspend one of the two Gijón blast furnaces starting in April as described in its annual plan. — attribution: Eurofer
Aditya Mittal, chief executive of the multinational, commented that the trajectory ahead could see a more favorable balance after a soft patch. While a modest drop in demand is anticipated, particularly in the construction sector, there is optimism that as existing inventories are drawn down, demand could rebound by roughly 2% to 4%. This view is consistent with insights from finance leadership within the group. — attribution: Eurofer
Yet the industry faces persistent structural challenges. The ongoing imports of high‑carbon steel from outside the European Union constitute about a quarter of the EU market, a share that remains outsized even as demand weakens. Coupled with persistent carbon intensity in production, Eurofer’s leadership emphasizes the urgency of a coordinated approach. Axel Eggert, the association’s chief executive, has called for a comprehensive European industrial agreement to safeguard the steel sector and the broader EU value chain. Without such alignment, it will be harder to secure long‑term competitiveness and resilience. — attribution: Eurofer
Eurofer notes that the first-quarter trend could show an improvement in apparent steel consumption, helped by seasonal demand and some stabilization in pricing. Nonetheless, the overall outlook remains highly uncertain. Even with a projected 5.6% rebound for the year, consumption volumes are expected to stay well below pre‑pandemic levels as markets slowly normalize. The association stresses that these projections depend on a mix of factors, including global trade patterns, domestic construction activity, and energy costs that influence production economics. — attribution: Eurofer