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European steel demand to fall in 2024, Eurofer states

European steel need will diminish this year, industry group the European Steel Association ( Eurofer) stated on Tuesday, devaluing its outlook for a 4th time this year due to weak need and a slow economy.

In July, the Eurofer cut its 2024 outlook for steel demand growth in the EU to 1.4%, however on Tuesday it said consumption would fall by 1.8%. It formerly decreased its expectation in February and April.

The extreme consequences of the war in Ukraine and other worldwide geopolitical tensions, in addition to the deteriorating making outlook across the EU and unpredictability in the total financial environment, have continued to take their toll, a Eurofer report said.

It still anticipates development in obvious steel consumption next year, but cut its projection to a gain of 3.8% from 4.2%.

Evident steel usage procedures output of steel producers plus net imports minus net exports.

The group of steel producers stated it devalued its forecasts after data showed that apparent steel intake in the second quarter fell 1.3% to 34.8 million metric tons after a. slide of 3% in the first quarter.

Such data even more verify the immediate requirement for action at. ( the) EU level to preserve sustainable steel production and. quality tasks in Europe while supporting decarbonisation. investments, said Axel Eggert, general director of Eurofer.

He got in touch with the EU to deal with worldwide overcapacity, unjust. trade practices, high energy prices and access to ferrous scrap.

Even with a modest healing predicted in 2025, usage. volumes are most likely to remain well listed below pre-pandemic levels,. Eurofer stated.

In the second quarter, steel imports to the EU fell by 1.5%,. but their total share reached a historic high of 28%, it. added.

Spanish steelmaker Acerinox on Tuesday published a. sharp drop in third-quarter net profit as an outcome of a weak. stainless-steel market in Europe and The United States And Canada that it said. will likely continue through the 4th quarter.

(source: Reuters)