European steel makers said that one in six workers have lost their jobs or are working shorter hours as demand for steel has collapsed.

EUROFER said that some 72,000 jobs or 17% of the European Union's 440,000 strong steel work forces have been hit by the downturn.

EUROFER said that steel demand has collapsed since the last three months of 2008, with average orders falling 60%. It says it expects consumption to fall by 30% in the first quarter of this year and to keep plunging in the second quarter.

It added that it is asking EU governments to boost financing for steel customers, car makers and the construction industry by giving more loans, guarantees and credit insurance.

The car industry claims that car manufacturers and suppliers need some EUR 40 billion in loans from governments because the financial crisis has sharply hiked the cost of borrowing while the recession has braked the sale of new cars.

(Sourced from www.ap.org)