According to Eurofer’s latest Q4 economic report, EU steel consumption in 2024 is expected to shrink by 1.8%, reversing the prior forecast of a 1.4% increase. This decline is largely attributed to a sharper-than-expected drop in output across steel-consuming industries. Looking ahead to 2025, Eurofer forecasts a 3.8% consumption increase, though this would still fall short of pre-pandemic levels.

Key Industry Insights

The report notes that output in steel-consuming sectors is projected to fall by 2.7% in 2024, deviating from the previous estimate of a 1.6% decline. Though 2025 output is expected to grow by 1.6%, this is also lower than previous projections of 2.3% growth. The first half of 2024 saw a decline in apparent steel consumption, with Q2 consumption dropping 1.3% to 34.8 million tons. Intra-EU trade fell by 1.7%, and while imports declined by 1.5%, import market share rose to a historic high of 28%.

Sector-Specific Challenges

Steel demand remains sluggish, particularly in the construction and automotive sectors. Construction faces rising material costs, labor shortages, and the impact of high-interest rates, exacerbating challenges in the industry. Public infrastructure spending, initially expected to counterbalance these challenges, may decrease due to budget constraints, further straining steel demand. Additionally, geopolitical tensions—especially the Ukraine conflict—high energy costs, and a bleak outlook for EU manufacturing are compounding the demand downturn.

Stay updated with LangZo Steel for more industry insights and trends affecting the global steel market.