Posted on 26 Mar 2019
ArcelorMittal saw demand for its long steel in Spain increase during 2018, according to Stefan Deheyder, ArcelorMittal Europe Longs marketing director. For this year the outlook is uncertain.
Some key economic indicators have remained positive at the beginning of this year, such as crude steel production and construction confidence. However, uncertainty in the Spanish domestic steel market persists due to political instability and a number of external factors, Deheyder said at last week’s Iberia Steel Net Forum in Seville, attended by Kallanish.
Large public projects are still on hold before the Spanish general and local elections, while the competitiveness of local mills against other EU producers is worsening as a result of higher electricity costs. Trade disputes and Brexit are also persisting factors of uncertainty this year.
“Growing steel imports, as well as increasing raw materials prices, are one of the main factors that could affect Spanish steel demand in 2019,” Deheyder commented. “Moreover, there is a reduction in steel exports to some EU countries, such as Germany and Italy, while the volatility of currencies on other markets is impacting the profitability of shipments,” he added.
Spanish long steel demand improved by 11.4% year-on-year in 2018, according to ArcelorMittal data. During 2018 the local market consumed 1.54 million tonnes of rebar, up 25%. Shipments of sections and merchant bars also improved, rising by 12% and 5% respectively to 545,000t and 690,000t.
