Steel production slows, UK Steel figures show
After a period of strong recovery, steel production is beginning to slow down as demand dips, the trade body UK Steel said today (21 July). Although steel output in the three month period April to June continued its gradual upward recovery, there were signs that it was beginning to level off as demand from some sectors weakened.
According to the latest figures, production in the second quarter of 2011 averaged 193,000 tonnes per week. This was 2.3% higher than the first quarter of 2011. (189,000 tonnes per week).
However, despite the gradual increase, compared to the same quarter last year (198,000 tonnes per week), production was 2.5% lower. Steel production in the UK is still around one third below pre recession levels.
UK Steel director Ian Rodgers said that while demand from the automotive, energy and aerospace sectors remained strong, demand from other sectors, in particular construction, stayed weak in the wake of the banking crisis and, more recently, in response to cuts in infrastructure and public spending across the EU.
