European Steel Market 2018 Outlook
European steel market is getting back to stable footing in 2018. Nearing 2.5 million jobs, European Union’s steel market’s production and employment levels continue to rise. According to Eurofer’s report, European steel industry spends €3.9 billion in new machinery and labor annually.
With overall positive outlook, European steel sector’s apparent consumption was up to 159 million tons with 1.3% increase last year. Indexed steel use increased 7% in tubes, 6% in mechanical engineering, 4.8% in construction and 3.7% in automotive sectors.
EU steel industry’s Gross Value Added is estimated above €128 billion when direct, indirect and induced effects are considered. From general perspective, European steel market’s GVA is 11% and 7% above average for overall EU’s economy and general manufacturing sector in Europe respectively.
Steel sector’s total value of turnover is valued above €123 billion, six times based on industry’s direct GVA, making it largest compared to other manufacturing industries.
Turkish Steel in EU Market
Turkey has been the top country for flat steel products exports, and long steel product imports in 2017. Turkish steel exports totaled 4,674 million tons last year, up from 4,288 million tons in 2016. Between 2008 and 2017, Turkey has consistently been one of the biggest steel products exporters to Europe.
EU Steel Sector’s 2nd Quarter
In 2018’s second quarter, EU steel market continued to grow with help of increased consumption from steel-using sectors, and healthy economic fundamentals. Domestic deliveries to European market rose 3.7% year-on-year, while third country imports increased 9.8% in the same period. It is unclear how trade tensions will impact the positive outlook as demand levels are headed towards leveling out.
“Growth is stabilizing in EU steel markets, in line with expectations. However, the various challenges facing the sector will impact us in the coming months. Trade tensions could clearly upset the market’s balance, as could slowing demand in other parts of the economy.” said Axel Eggert, Director General of the European Steel Association on October 25th ‘s press release.