Prospects for the use of steel in EU construction activities

Growth in construction activity in the EU practically stalled in the second quarter of this year after a robust recovery in the first quarter, thanks to moderate weather conditions. Meanwhile, it is the construction sector that has become one of the main consumers of steel over the past three years. According to experts in the production of building structures http://petstroy.ru/, construction companies have taken the second place in the consumption of metal products after the automotive industry.

On an annualized basis, steel production growth may be negative in a number of EU countries, in particular in Germany, France, Italy, Belgium, Luxembourg and Austria, while in Spain the upward trend remains. At the same time, EU markets are at fairly healthy levels in the UK, Sweden, Poland and Hungary.

The EU construction sector is being renewed by activities in the residential sector, in particular in Germany, the UK and Sweden. In Poland and Hungary, activity in the use of construction products is gaining momentum thanks to the construction of highways and other infrastructure projects. Estimates for the third quarter of 2014 show that momentum in the sector remains weak, particularly in France, Italy and Spain.

The outlook for the last quarter of the year does not foresee any improvement in overall growth in 2014 and will be at 1.8 percent. The forecast for 2015 is for a similar annual growth rate. However, the year-over-year growth pattern is expected to show a more regular seasonal pattern.

Residential activity will remain a key growth driver, although non-residential construction will gain momentum again. Some EU countries are hoping to boost their economies through construction projects because of the positive impact on infrastructure efficiency and job creation. EU construction investment increases by almost 2 percent in 2015.