Eurofer has reduced significantly its growth outlook for apparent steel consumption in the EU due to a slow-down registered during Q3 this year, the association said in its latest market outlook report on Thursday.
Eurofer reduced its growth expectation for 2014 to 2.6% year on year from an outlook of 3.7% issued in July.
The forecast for 2015 was also revised down to 2.4% from 2.9%.
The outlook for real steel consumption growth was also revised down to 1.2% for 2014 and 1.9% for 2015.
"Real steel consumption in the EU contracted by 0.3% year on year in the second quarter of 2014 whereas a moderate increase had been expected. The decline can be largely explained by weaker-than-expected growth in activity of most steel-using sectors as a reaction on the marked year-on-year rise in output in Q1," Eurofer said.
It added that the slowdown was more pronounced in construction and related sectors, while the automotive and steel tube sectors escaped the negative trend.
Apparent demand is demand from stockholders, while real demand is that from end-users.
The association also said that according to preliminary data the main winners from the slight recovery in demand had so far been importers.
Total imports, including semis, grew 25.5% year on year in Q2 and 19% in Q3, while deliveries from European mills were only up 1% in Q2.
During the January-August period Europe remained a net steel exporter but the surplus fell significantly and for flat products markets volumes of imports and exports were almost the same in Q2.
