According to the market forecast released by the European steel union on August 5, the output of all steel consumption industries in the European Union will drop by 12.8% in 2020 and rise by 8.9% in 2021. However, Europe said that the strength of steel consumption in the construction industry will be significantly smaller than that in other industries due to the awesome support of the government.
For the steel industry's largest consumption area and the least affected industry in the EU this year - construction industry, steel consumption is expected to account for 35% of the EU steel consumption market this year. Europe forecasts that construction industry output will decline by 5.3% year-on-year in 2020 and rise by 4% in 2021.
For the automobile industry, which is the most affected industry in EU this year, steel consumption is expected to account for 18% of the EU steel consumption market this year. Europe predicts that the output of the automobile industry will decline by 26% in 2020 and rise by 25.3% in 2021.
The European Union predicts that in 2020, the output of mechanical engineering will drop by 13.4% year on year, accounting for 14% of the EU steel consumption market, and will rise by 6.8% in 2021.
In the first quarter of 2020, the output of EU steel pipe industry decreased by 13.3% year-on-year, but it is considered to be flexible due to its close connection with the construction industry. However, demand for large welded pipes is expected to remain weak in the oil and gas industry. In 2020, the steel consumption of steel pipe industry will account for 13% of EU steel consumption market. Europe expects that in 2020, the output of steel pipe industry will continue the downward trend of 2019, with a year-on-year decrease of 19.4%, and a rebound of 9.8% in 2021.
Europe said the novel coronavirus pneumonia epidemic exacerbated the EU's household electrical appliance industry's downturn since the third quarter of 2018. Europe expects that the output of household appliances will drop by 10.8% in 2020 and recover by 5.7% in 2021. In 2020, the steel consumption of the industry will only account for 3% of the EU steel consumption market.
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