According to Mining News Pro - As it seems, coronavirus is a major threat for Europe’s steel industry, why so steel production has not yet fully recovered since the 2007 and 2008 recessions.
Demand for steel in the construction and automotive sectors that are two major steel consumers, has declined. Last week European Automobile Manufacturers Association (ACEA) announced that the pandemic impacts 1.2 million automobiles. According to Platts, approximately 55,000 tons of daily steel demand from Europe`s automotive sector has declined due to the suspension of European automobile production lines.
There are heavy pressures on infrastructures and productions of some countries because of quarantine.
Some analysts believe that European steel production will decline in the same way as in 2009, as steelmakers must respond to the slump in demand.
In 2009, Europe`s crude steel production fell from 199 million tons in 2008 to 139 million tons.
Raw materials demand also fell including cast iron which was 87mt in 2019. This number was 116mt in 2007.
European steelmakers have less consumption of Brazil`s iron ore, so Vale has allocated more to Asia, the Middle East and the United States.