Issue link: https://read.dmtmag.com/i/120608
The European Steel Association he 3rd High-Level Roundtable (HLR) on the future of the European steel industry took place on February 12, 2013. The European steel industry is a world leader in its sector with a turnover of about EUR 190 billion and direct employment of about 360,000 highly skilled people, producing 178 million tonnes of steel per year in more than 500 steel production sites in 23 EU Member States. In addition to the typical challenges faced by a cyclical industry, such as iron and steel, the developments of economic fundamentals over the last years within the economic crisis, and the evolution of prices of raw materials and energy have all presented new challenges for the EU steel producers. These challenges add to the important challenges for the sector resulting, for example, from a global overcapacity - due in part because emerging economies started building their own capacity. Furthermore, there are difficulties in meeting some high European standards of environmental sustainability, in particular, for old installations and T the shift to a low-carbon and a more resource-efficient economy, as defined in the EU2020 agenda. These challenges require the steel industry to revise its long-term strategy in partnership with other stakeholders, including governments. EUROFER is satisfied with many aspects and findings in the recommendations of the High-Level Roundtable on the future of the European Steel Industry, published on February 12, 2013. It now calls for an effective Steel Action Plan, as well as for the support of José Manuel Barroso, President of the European Commission, in changing the policies that put the European steel industry at disadvantage in international competition. The Steel Action Plan is to be published by the European Commission in June this year. "The proof of the pudding is in the eating," EUROFER President and CEO of voestalpine AG Dr. Wolfgang Eder in his speech during the presentation of the recommendations "It's time to translate good intentions into action. Industrial emigration from Europe has already started!" German Steel Industry Sees No Recovery This Year ermany's steel sector should not get its hopes up following some positive data at the start of the year, with demand remaining weak and competition in global markets intensifying, a trade group said recently. "I don't expect any major leaps," Hans Juergen Kerkhoff, president of the German steel association, told Reuters, adding he did not see any sustainable recovery across Europe, either. Austerity measures aimed at cutting budget deficits have hit economic growth across the European Union and are particularly painful for the steel industry, because of the accompanying slowdown in demand for cars, appliances and new buildings. Germany's steel sector, which accounts for about a quarter of Europe's crude steel production, has performed G better than its counterparts in France, Italy or Spain, but is still expected to post only moderate growth this year. "There is still uncertainty in the markets, just like there was in the second half of 2012, when both traders and processors were cautious," Kerkhoff said on the sidelines of a steel industry conference. Customers have now started refilling depleted inventories, driving up output by five percent in January, the biggest monthly gain since September 2011. However, a four percent decline in new orders raised doubts that restocking would continue. ThyssenKrupp, Germany's biggest steelmaker, this week warned that it was unlikely to return to growth until its next financial year, though a spokesman said on Wednesday its workers were no longer on shortened hours this month. IDA UNIVERSAL March-April 2013 FLAT CONSUMPTION Europe's steel sector overall has a tough year ahead. "We were hoping to see a slow recovery year on year, but it is just not there," Arnaud Poupart-Lafarge, chief executive of ArcelorMittal's Long Carbon Europe business, told Reuters. ArcelorMittal, the world's largest steelmaker, has reported a $3.7 billion group loss for 2012 after writing down the value of its European steel business by several billion dollars. Consultancy PwC estimates that European steel demand will grow at an annual rate of only 0.6 percent through 2025, well below a global average of 4.5 percent, according to a recently-published study. www.reuters.com, by Maria Sheahan/ Tom Käckenhoff 25