Eurofer confirms that European apparent steel consumption last year performed worse than anticipated. A real rebound is projected only in 2024.

2022 saw apparent steel consumption fall 7.2% year-on-year, a result significantly more negative than anticipated. European apparent steel consumption was 140 million tonnes, the lowest level since 2014, excluding the 2020 year of Covid, Kallanish notes.

During the fourth quarter of 2022 alone, apparent steel consumption collapsed by almost 20% y-o-y, the worst quarterly performance after the pandemic.

This year, Eurofer expects apparent steel consumption to inch down a further 1%, with a rebound of 5.4% forecast in 2024.

On the contrary, real steel consumption performed better last year, recovering by 0.2% y-o-y. It should continue its slow recovery, rising 0.3% this year and then by 3% in 2024.

“The steel industry was severely knocked at the end of 2022 and is striving to recover, but the conditions are not yet conducive. Energy prices, production costs and inflation are still much higher than pre-crisis levels. Decarbonisation projects are underway, but we need access to affordable fossil-free electricity as of now, if we want the EU steel sector to transition whilst staying competitive at a global level,” says Axel Eggert, director general of Eurofer.

Similar to apparent steel consumption, imports of steel products (including semis) decreased 6.6% y-o-y after the 32% jump registered in 2021. The negative trend for imports continued into January 2023, with a drop of 46% y-o-y registered by Eurofer.

“Although steel imports have decreased in tandem with demand, their market share is still historically high (23.4%),” the association notes.