Economic slump hits UK steel output
1 min read
UK steel output in 2011 ended the year just 0.8% higher than in 2010 as the eurozone crisis and economic uncertainty in the second half of the year badly affected demand as customers ran down stocks.
However, according to data from the trade body UK Steel, demand is forecast to pick up this quarter on the back of restocking in supply chains and the current increase in the price of steel is reflecting this more positive outlook.
Output per week in 2011 was 182,298 tonnes compared to 180,850 tonnes per week in 2010.
The extent of the impact of the eurozone crisis towards the end of the year was shown by the fact output in Q4 2011 was 7.7% below the previous quarter. This was also 0.5% below Q4 in and the lowest quarterly steel output since the depth of the recession in Q1 2009.
UK Steel director Ian Rodgers said that after an improvement in the first half of last year, steel demand could not escape the nervousness in key customer sectors about the strength of both the UK and Eurozone economies.
He went on: "However this low output level is not an accurate indication of the underlying level of consumption. Stocks in supply chains are now at very low levels, and re-stocking in the first quarter is expected to help drive a recovery in steel output."
