After rebounding strongly in 2021, European steel consumption is expected to grow much more slowly in 2022 and 2023, by 3.2% and 1.7% respectively on-year, says Eurofer. End-use demand, from the automotive sector in particular, will be seriously impacted at least till mid-2022 by global supply chain issues and soaring energy prices.

EU apparent steel consumption in the third quarter of 2021 rose on-year for the fourth consecutive quarter by 14.3% to 36 million tonnes, although this was down from 40mt in Q2.
“The positive trend in steel-using industries and in steel demand observed since the end of 2020 continues, but the outlook is becoming gloomier,” Eurofer director general Axel Eggert says in a note. “Ongoing supply chain disruptions, skyrocketing energy and carbon prices as well as persisting inflation are putting the recovery of the steel sector at risk. Combined with the current EU climate and energy policies, these are the ingredients of a dangerous cocktail that may drive Europe into a structural crisis and industry out of Europe.”