EU steel producers preparing for no-deal Brexit as demand tumbles
2020-10-30 13:06:24 [Print]
The European Union steel sector, faced with a tumble in demand this year due to the COVID-19 pandemic, is preparing for a potential collapse in talks between the United Kingdom and the EU on a future trade deal, an industry group said on Wednesday.
The two sides resumed talks in London on Tuesday to try to strike a last-minute trade agreement, less than 10 weeks before the United Kingdom leaves the bloc's orbit.
"Brexit remains a threat because there's a high likelihood that we will get at the end of the day a no-deal scenario, and we are getting prepared for that," said Alessandro Sciamarelli, an official with the European Steel Association (Eurofer). "At Eurofer, we are very much against a no-deal Brexit."
He said EU steel consumption is due to fall by about 14.6% this year after the COVID-19 pandemic hit industrial activity, especially the auto sector.
Apparent crude steel demand - which measures steel producers' output plus imports minus exports - slid by 25.5% in the second quarter, the biggest drop ever recorded, Sciamarelli said.
Steel demand is forecast to bounce back by 13.1% in 2021, but a second wave of the COVID-19 makes the timing of the recovery uncertain, he added . "The outlook for 2021 is very much affected by pandemic developments and the extension of this new wave we're having."
Among steel-using sectors, construction has been the least affected, with a 3.6% fall in output forecast for this year . Automotive has been the hardest hit, with the decline seen at 20 . 6%.
While imports have declined along with demand, Eurofer reiterated its call for stricter EU safeguarding measures due to worries that rising output elsewhere will lead to a future surge in shipments.
The two sides resumed talks in London on Tuesday to try to strike a last-minute trade agreement, less than 10 weeks before the United Kingdom leaves the bloc's orbit.
"Brexit remains a threat because there's a high likelihood that we will get at the end of the day a no-deal scenario, and we are getting prepared for that," said Alessandro Sciamarelli, an official with the European Steel Association (Eurofer). "At Eurofer, we are very much against a no-deal Brexit."
He said EU steel consumption is due to fall by about 14.6% this year after the COVID-19 pandemic hit industrial activity, especially the auto sector.
Apparent crude steel demand - which measures steel producers' output plus imports minus exports - slid by 25.5% in the second quarter, the biggest drop ever recorded, Sciamarelli said.
Steel demand is forecast to bounce back by 13.1% in 2021, but a second wave of the COVID-19 makes the timing of the recovery uncertain, he added . "The outlook for 2021 is very much affected by pandemic developments and the extension of this new wave we're having."
Among steel-using sectors, construction has been the least affected, with a 3.6% fall in output forecast for this year . Automotive has been the hardest hit, with the decline seen at 20 . 6%.
While imports have declined along with demand, Eurofer reiterated its call for stricter EU safeguarding measures due to worries that rising output elsewhere will lead to a future surge in shipments.