EU steel demand growth - not till 2014

According to Eurofer, a very weak first quarter in 2013 [caused by depressed demand, and exacerbated by a harsh winter and weakening exports] means that 2013 steel demand is likely to fall when compared to 2012 demand. Therefore, steel demand growth in Europe should not be expected until 2014.

Eurofer estimate the 2013 decline in steel demand at ~4.5 per cent (see http://eurofer.org/index.php/eng/News-Media/Press-Releases/Economic-Steel-market-Outlook-2013-20143). This is after consumption fell ~10 percent in 2012. The 2014 demand growth is expected to be just 2 per cent or so.

For further reading, see http://finance.yahoo.com/news/eu-steel-demand-only-return-112000883.html

Chinese stimulus will be good for steel demand

According to a recent MEPS report, the thrust of the recent Chinese stimulus package will favour steel industry demand. Investment is to be increased by Government in infrastructure projects. Subsidies will also be given to the domestic appliance sector in order to produce more energy-efficient products. Funds are also being released to build two new major steel plants in the south of the country.

 

The main impact of the stimulus – which centers on expansion of investment in infrastructure - will be to provide a boost to the producers of long steel products – meaning reinforcing bars, wire rod and structural sections. The stimulus will thus cause a significant rise in Chinese steel demand.

 

For original MEPS report, visit http://www.meps.co.uk/ChinaSteelNews0512.htm

 

blogger@steelonthenet.com

Stainless steel demand on the rise?

According to a MEPS report stainless steel demand should be on the rise in the coming weeks. This is because of the expectation that stainless steel prices should fall, as nickel prices have been declining.

In fact, changes in the nickel price have been quite marked recently, with the nickel price falling to ~$25,000/tonne recently against earlier highs in 2011 of around $29,000 per tonne.

 

Visit our main website to track the nickel price and other non-ferrous prices.

 

blogger@steelonthenet.com