Steel demand in Europe to grow in 2018 alongside imports - Eurofer

Steel demand in Europe will grow in 2018 along with imports
According to Eurofer President Gert Van Poelvoorde, steel demand in Europe will grow slightly this year, similar to the year-over-year growth in 2017.

Speaking at a briefing on Thursday ahead of the 2018 European Organization Day in Brussels, Van Poelvoord said that the region's 2018 steel demand is expected to reach 162 million tonnes, up 2.3% from 159 million tonnes in 2017. year.

However, after imports of imports virtually ceased in the second half of 2017 - for the first time in six years, this has resulted in European producers, rather than their competitors elsewhere in the world, being able to fully benefit - the region has seen 8% growth imports in the first quarter of 2018, Van Poelward said. Canada, EU, Mexico will be subject to US metal tariffs

He said the surge is directly related to tariffs on US 232 steel. Although this had just been implemented on June 1, the threat to them lingered for a month in the global market.

“This is certainly a very wake-up call ... the first deviation from 232 tariffs,” said Van Poelvoord, adding that this is why the EU must continue to “guard the playing field globally” as it considers guarantees to counter US tariffs of 25% of the import of steel.

Eurofer has recommended to the European Commission that its response to Section 232 should include a 25% import tariff, in addition to the country's import quotas. Information on the EU plan is expected to be released in July.

Growth projections are driven by strong growth in the steel sector in Europe.

The construction sector, which accounts for about 35% of steel consumed in Europe, increased demand growth by 4.8% in 2017.

The automotive industry, which accounts for about 19% of steel consumption in Europe, increased by 3.7% last year, while the mechanical engineering industry - about 15% of regional demand - grew by 6% in 2017, Van Poelvoord said.

“All economic indicators are good,” he said, adding that overall European steel demand grew by about 2.7% in the first few months of this year.