Issue 30, 2024 - This week's editorial: Europe outlook worsens further, China sees unwanted records

Europe and China dominated the headlines last week but, unfortunately, none of them were positive.

In Europe, the steel demand rebound hoped-for at the start of this year has come firmly off the rails. Eurofer revised down its EU apparent steel consumption forecast for 2024 to 1.4% growth – from 3.2% – due to “a worsening combination of uncertainties”, including high energy prices, persistent inflation, economic uncertainty and geopolitical tensions. 

Steel-using sector output is now seen declining 1.6% – versus 1% – with automotive output to contract by more than previously expected. Imports’ share in EU steel consumption meanwhile remains at a historically high 27%. The continent’s steelmakers are pinning their hopes on von der Leyen’s pledge of a new European Clean Industry Deal after she was re-elected European Commission president.

One steelmaker needing market conditions to improve yesterday is Liberty Steel, whose Czestochowa plate mill in Poland was declared insolvent last week and appointed an administrator. This comes after its Ostrava steelworks in neighbouring Czech Republic was put up for sale last month following insolvency. At its Dunaújváros plant in Hungary, the coke batteries are being closed for good after the hot-end was idled last year.

Despite the subdued demand, ArcelorMittal was reported to be hiking all commodity grade long product prices in Europe by €20/tonne amid higher electricity costs.

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