The EU steel market started 2010 on a positive note, according to EUROFER’s Quarter 2-2010 report on the Economic and Steel Market Outlook 2010-2011. “Improving business confidence has triggered some restocking, but so far inventories have remained well balanced with supply-demand fundamentals," noted EUROFER Director General Gordon Moffat.
EUROFER said member companies’ deliveries and orders are picking up from the lows reached in 2009, but believed the rebound was driven by restocking rather than increased consumption by end-users. Inventories were depleted in 2009 and have not yet achieved parity with manufacturing output levels expected for 2010.
The organization expects most steel using sectors – aside from construction - to show positive year-on-year growth again from Q2-2010 onwards.
EUROFER said the recovery in activity in steel using industries should bolster real steel consumption into 2011 and provide an additional impulse to the stock cycle. This will set the stage for a further improvement in EU market fundamentals.
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