Heather Wijdekop, Commercial Director of Tata Steel Europe Ijmuiden, said that Europe's apparent steel demand is expected to remain below actual consumption in 2023, which will cause challenges for the European local industry.
While steel demand was seasonal before the COVID-19 pandemic, demand has become more volatile since 2020 and strong destocking activities have led to a reduction in apparent demand.
Eurofer forecasts that apparent steel consumption in Europe will decrease by 1% y-o-y in 2023, following a 7.2% y-o-y contraction in 2022, while actual consumption will grow by 0.3% y-o-y, following a 0.2% y-o-y increase last year.
While there are some bright spots for steel demand, such as automotive, low inventories in the supply chain and the slow recovery of apparent demand pose problems. Moreover, Europe's domestic supply of steel products may face further challenges due to ongoing problems at blast furnaces and finishing lines across the continent.