European steel market slows or will continue until 2020 Steelmakers demand action

Release time：Jul 04, 2019 From：admin

According to Bloomberg News, Wolfgang Eder, CEO of European steelmaker Voestalpine AG, said that in 2019, there was no sign of a reversal in the European steel market, and the market slowdown may continue until 2020.

European steelmakers have faced severe tests this year due to the sudden drop in demand for automobiles, the rising cost of iron ore prices and the impact of imported steel. In the past 12 months, the top ten steel manufacturers in Europe have lost nearly $40 billion in market capitalization.

Credit Suisse had expected the average price of iron ore prices to soar to $90 in the second quarter. This is because the global iron ore market may face a gap of 12 million tons in the second quarter of 2019, and Vale is difficult to compensate for the loss of production caused by the dam. The second is due to China's steel production in the first quarter of this year hit a record high, crude steel production reached 231 million tons, an increase of 9.92%.

In May, ArcelorMittal, the world's largest steelmaker, announced that it will cut its steel production at its various plants in Europe in response to weak demand and increased imports. However, no specific production reduction plan has been disclosed yet.

Britain's second-largest steel producer, British Steel, was liquidated and started bankruptcy proceedings.

Therefore, this week, 45 European steel industry executives jointly announced that the EU must limit low-cost imports to provide the current crisis in the steel industry.

Eder said that the tension between Sino-US trade will limit global economic growth and will further affect the steel industry.

The European Iron and Steel Industry Alliance (Eurofer) expects a slight decline in European steel demand in 2019 and a 1.3% increase in 2020.