World Steel Association estimates that in 2012 the demands for steel will increase by 2.1%, a considerably lower figure than the increase registered in 2011 (6.2%). Likewise, at global level, for 2013 it is estimated that the demand for steel should grow by 3.2, reaching a record of 1,455 million tonne.
At world level, in 2012, the steel market recorded growth again compared to the slowdown from the last quarter in 2011, but the economic situation deteriorated in the second quarter of 2012, due to the continuous uncertainty of debts in the Eurozone and to accentuated decreases registered on the Chinese market. “These factors have weighed hea-vily on business confidence and manufacturing activities around the world. As a result, figures in both the developed and emerging part of the world weakened considerably”, declared Hans Jürgen Kerkhoff, Chairman of the World Steel Association Economics Committee.
As regards China, due to measures for economy stimulation, the demand for steel will grow by 3.1%, the volume reaching 659.2 million tonne in 2013. In the CIS region, the estimates indicate an increase by 3.9% in 2013 (57.4 million tonne), significantly increasing compared to the level of 2011 (13.8%).
The European Union records the worst drop for 2012, estimates reaching -5.6%. In 2013, the situation might improve, the demand for steel amounting to 2.4%. “In Europe, the demand for the steel use remains at a low level and the economic increases of states continue to be non-uniform”, mentioned Kerkhoff.
Under the circumstances, the big steel manufacturing companies are strongly affected and determined to limit their activities and it seems that October meant for them the adoption of a decision: ArcelorMittal has announced that it will close a furnace in France, and in Romania the group operates a single furnace out of the four that were functional before the economic crisis. In Europe, out of the 25 furnaces, ArcelorMittal ceased production for 7 (two in France, two in Belgium and three in Germany), Czech and Romania being the ones to follow.
Also, for the metallurgical group Mechel, the situation does not indicate improvements of the activity at European level, the company announcing (in October) that it wishes to sell many assets (in Europe), including five plants held in Romania, for which the manufacturer negotiates with a potential investor interested in purchasing the assets held by the group in Romania.
Nevertheless, in other regions, the companies execute important projects especially since they are optimistic regarding the railway transport sector, which gains ground compared to other economic sectors and generates investment projects.
In Russia, besides other activities it carries out, Mechel’s development strategy aims at boosting the mining sector and the metallurgical integrated production of long pro-ducts. On the railway sector, the company invested in 2011 USD 1.44 Billion for the development of Elga coal complex, for the next two years USD 1.42 Billion being allocated for the project completion. Likewise, for the connection to the main line Baikal-Amur, the company built 321 km of line.
Moreover, for Tata Steel “the increase of the railway transport importance as an environmentally friendly transport mode, the launch of railway infrastructure projects determine us to invest in technology for the development of strong tracks that would meet the increase of the railway capacity and contribute to performance growth”, declared Mike Poulter, Tata Steel’s rail marketing manager. This will also generate the increase of the business sector in the field, the company signing recently an agreement for the provision of tracks for Brittany – Loire Valley high-speed line in France (182 km of railway line). “For the increase of the product quality, in the past 3 years we have invested EUR 50 Million in technological systems”, declared Gérard Glas, head of Tata Steel’s rail sector.
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