By Paul Ploumis (ScrapMonster Author)
November 02, 2015 01:20:52 AM
CANTERBURY (Scrap Monster): According to Aditya Mittal, Chief Executive, ArcelorMittal European operations, the regional steel demand is certainly on recovery path. However, the demand is unlikely to touch the record highs touched during the pre-2008-’09-crisis period. The company plans to hire more workers over the next three-years, he said.
The apparent steel consumption by the EU-28 region had peaked to nearly 200 million tonnes during 2007, before the crisis. The consumption recorded unprecedented growth in many countries like Italy, Spain and other Eurozone countries, after the creation of the Euro in 1999. The demand growth during this period was amply supported by a boom in consumption across the countries in the region.
After hit with the crisis, apparent steel demand in many countries fell to historic lows. The consumption demand has started showing signs of pick up. Germany and Eastern European nations had witnessed excessive steel demand growth in 2006/2007, before the crisis. The steel demand in these countries has risen sharply during recent times. The UK, France, Nordics and Benelux countries had not recorded strong demand growth before the crisis. The apparent steel consumption levels in these countries continue to remain well below the pre-crisis levels.
ArcelorMittal has made investments of nearly €5 billion in European facilities in the past 5 years. The economic data out of the region looks promising. For instance, EU-28 manufacturing output has touched its highest level since 2008. New car registrations hit four-year highs during the second quarter of the current year. Construction output too has recorded year-on-year increase last year. The company foresees modest demand growth in the coming years. It intends to hire over 1,200 employees over the next three years.
The exceptional rise in cheap imports of steel from China poses major threat to European steel operations, Aditya Mittal noted. As per figures, Chinese exports of steel products to European countries have more than doubled over the past two years.
