The output of the European steel using industries grew by almost 7.5 percent year on year in the third quarter of 2010, the same pace of improvement in activity as registered in the second quarter of the year, according to the first quarter report of the ‘Economic and Steel Market Outlook 2011-2012'' released by the European Confederation of Iron and Steel Industries (EUROFER). In the given quarter, exports remained the key driver for growth, but also domestic demand in the EU showed encouraging signs of improvement, whereas the boost from stock replenishment tapered off, EUROFER said.
According to EUROFER, at a country level, the performance of steel using industries in Germany and in Sweden remained particularly buoyant, much in contrast with the still depressed situation in Spain, whereas Belgium also appears to be lagging behind the general rebound seen across the EU.
Estimates for the last quarter of 2010 signal continued growth of well over five percent in the output of European steel using industries. On balance, the Steel Weighted Industrial Production (SWIP) Index is forecast to indicate a rise of 5.2 percent for the whole of 2010, again beating previous projections.
EUROFER said that the outlook of European steel using industries for 2011-12 is rather positive. Investment in machinery and equipment is foreseen to strengthen in the EU, whereas even construction investment is expected to show slight growth. Exports will continue to contribute to activity growth, helped by a relatively weak euro. With end-user activity well on track for sustainable improvement, the SWIP index is projected to grow by slightly more than four percent in 2011 and by almost 3.5 percent in 2012