European steelmakers will face a 75 percent reduction in new orders as a result of measures to combat new-crowned pneumonia, the European Iron and Steel Association (eurofer) said. At present, Europe’s steel downstream demand is unusually low, auto companies have stopped production to almost 70-80%, construction activity is reduced by about 40%, other manufacturing industries are also reducing production, it is expected that 50% of the steel production capacity of major EU steel companies will be forced to stop production, and about 40% of the labor force will be affected by temporary layoffs and reduced working hours. European mills cut production faster than steel mills in other parts of the world. According to the World Iron and Steel Association, crude steel production in 28 European Union countries fell 10 percent in the first quarter from a year earlier, compared with 20.4 percent in March. Crude steel production is expected to fall further as new orders from steel mills fall. Also, the European Association of Steel and Metal Distributors (eurometal) recently released a report that because of the closure caused by the epidemic, European construction, machinery manufacturing, automobile manufacturing and other serious impact, steel consumption is expected to decline by 20%-60%. Especially affected by the suspension of auto enterprises, steel processing service center business reduction of about 20-80%. The group expects a gradual recovery in steel demand from early May, with the latest forecast that sales will reach 55% to 65% of the original plan, and that the Nordic market is expected to outperform southern Europe. Still, the association expects this year to be one of the worst years for steel dealers, service centers and traders
Post time: May-06-2020