According to the forecast of Jefferies, a global securities and investment banking group, the EU's steel demand would decline by 4% to 5% in 2012 and the demand would remain soft in the foreseen future.

The report predicted that the EU's steel demand would be at around 147 million tonnes in 2012, falling by 4% YoY and decreasing substantially by 27% from the peak in 2007.

Meanwhile, the demand for steel flat products from automobile and machinery sectors would remain strong while the demand for steel long products from construction industry would be sluggish.

In addition, the report pointed out that the steel prices will not rebound until the oversupply is digested.

Source - www.yieh.com)

(www.steelguru.com)