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Economic and steel market outlook 2020-2021, fourth quarter
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The COVID-19 pandemic continues to rage across Europe, with all steel-using sectors being affected. Apparent steel consumption in the EU fell (-25.5%) year-on-year in the second quarter of 2020, after a drop (-12%) in the first quarter. This was the most severe drop in EU steel consumption ever recorded.
The exceptionally negative trend in steel demand seen in the second quarter of 2020 is – as widely expected – the result of the economic and industrial lockdown in response to the Covid-19 pandemic.
Industrial activity restarted over the third quarter – when government COVID measures were largely lifted. Figures for the period will likely show a considerable rebound in GDP as well in industrial production, compared to record lows observed in the second quarter. This brief recovery may now be at risk if there is a COVID-induced ‘double-dip’ recession.
The unprecedented nature and evolution of this crisis means uncertainty and volatility surrounding possible developments in the coming months is still high. The outlook for this year and for 2021 remains very uncertain, given that COVID-measures are now being reimposed across the EU.
Total output in steel-using sectors fell (-21.3%) in the second quarter of 2020 after falling (-6.5%) in the first quarter.
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Brussels, 15 July 2024 – The proposal for a European Pact for Steel, presented by the German delegation to the European People’s Party (EPP), is a timely initiative in view of the start of the new EU legislative period. The European Steel Association strongly backs the creation of an EU high-level group, led by a renowned political personality, to ensure the success of the transition of the EU steel sector with rapid interventions, and urges Commission President Ursula von der Leyen to endorse it.
Brussels, 25 June 2024 – The EU decision to continue the steel safeguard for another two-year period is a much-needed step towards ensuring the stability of the steel market amidst the highest levels of import penetration ever recorded in the EU. However, as global excess capacity is projected to increase even further in the coming years, a longer-term solution needs to be developed to address this structural challenge, says the European Steel Association.
Joint Statement