Eurofer adjusted its steel consumption forecast in the EU for 2022

European metallurgical association Eurofer revised its February forecast for the consumption of steel products in the region this year. As the union noted, the events in Ukraine had serious negative consequences for the economy due to the rise in energy prices and disruption of supply chains.
If Eurofer previously predicted a 3.2% increase in regional steel consumption for this year, it now thinks there is likely a 1.9% decrease. Demand could rise again by 2.3% in 2023, but as Eurofer CEO Axel Eggert noted, the situation is highly unpredictable and will depend on developments in the coming months.

Eurofer predicts that the biggest decline will be in the home appliances sector, where production will fall by 3.3% in 2022 compared to last year. At the same time, the association predicts a 2.3% growth in the construction sector and a 4.9% improvement in the automotive sector, compared to 2021.

Eurofer calls the main risks an economic downturn or the possibility of stagflation due to the exacerbation of the energy crisis and shortages of raw materials. Logistics problems are also a serious negative factor. According to the association, some European steel companies have experienced interruptions in the supply of spare parts for equipment due to severed ties with Russia and coronavirus restrictions in China.