UK steel production declines
1 min read
UK steel output fell in the third quarter from July to September as companies cut production and ran down stock levels in response to deteriorating business sentiment in the main customer markets across Europe.
Production in the UK fell by 7.3% to 179.3 thousand tonnes per week, compared to 193.4 thousand tonnes per week in the previous second quarter according to the latest data from UK Steel,
This follows two quarters of successive growth and indicates the extent to which the recovery in core manufacturing and construction markets remains fragile. The fall also means that steel production has fallen back to the same level as the third quarter in 2010 and remains at 34% below the pre-recession Q3 2008 level.
Describing the figures as "disturbing", UK Steel director Ian Rodgers said: "The summer holiday period is always relatively quiet but there is usually a distinct rebound."
The figures reflected nervousness right across Europe, he went on, with uncertainty meaning steel customers were keeping stock levels low with a knock-on impact on output levels. A strong rebound in the immediate future was unlikely.
