Europe Steel Industrial have effected by COVID-19
European industries affected by the pandemic
The European steel industry was severely hit by the coronavirus pandemic. Experts report that the automotive industry is the second largest consumer industry for steel, temporarily closed. while the construction industry (the most consumed industry) slowed sharply in the UK in the last week of March. It can be expected that the current crisis (still intensifying) will have the same impact on the steel industry as the global financial crisis, or even greater. According to data from the World Steel Association (world steel), the financial crisis led to the EU ’s crude steel production in 2009 A year-on-year decline of nearly 30% to 139 million tons.
European steel price affected by the pandemic, the demand and capacity are reduced.
Jefferies International analysts Simon Thackray and Abraham Akra said this week: “The dislocation of COVID-19 steel demand should bring capacity utilization back to [Global Financial Crisis] levels and Steel production will be significantly affected. “During the COVID-19 pandemic, auto factories have been closed. We expect construction activities to slow down accordingly. Some governments are now exempt from lock-in operations. The mid-term demand blow from the pandemic will lead to unemployment. The rate is rising and it is expected that it will take several months to restore the locked state. ”
According to the International Iron and Steel Association, 28 countries/regions in the EU produced 159.4 million tons of crude steel in 2019. Sources from well-positioned steel makers say the current crisis may shut down the steelmaking capacity of major EU mills by as much as 50%. Agent SP Angel estimated on Friday that the European blast furnace with an annual capacity of 19 million tons has been closed and the capacity of other blast furnaces is decreasing. Other furnace shutdowns will occur in the next few days. Brazilian miner Vale said mid-week that European iron ore demand had been cut by 18 million tons.
