The European Steel Association (EUROFER) indicated that the performance of the EU steel industry in the first quarter of 2022 slowed compared to 2021, forecasting for a bleak outlook for European steel markets this year.

Steel demand outlook remains highly uncertain, driven by the ongoing energy crisis, inflation, supply chain disruptions, and Russia's invasion of Ukraine. EUROFER believed this uncertainty will continue at least through the first quarter of 2023, depending on how the Russian-Ukrainian war develops and its impact on global supply chains.

As a result, production in steel-using industries has been cut in half for 2022 compared to EUROFER's previous forecast. Year-over-year growth is now forecast at 1.1%, compared with an earlier forecast for growth of 2%.