EUROFER said that the outlook for 2009 is grim due to the strongly negative impact of the financial crisis, reduced credit supply and risk aversion on investment, private consumption and international trade. This will translate into a continuation of recessionary conditions for the global economy. The economic, fiscal and monetary support announced by the European Commission and national governments will not prevent a serious economic downturn in 2009, but should be supportive to stabilizing confidence.
It added that the 2009 outlook is very bleak for almost all steel using sectors, particularly in the first half of the year. While declining investment and private consumption in the EU and abroad will directly hit construction and automotive demand, the downturn will spread further into the main supplier networks, largely paralyzing the steel value chain.
EUROFER’s priority is to seek to support the industry through this difficult period, maximizing access to the economic stimulus programs being put in place in Europe and, longer term, defining the availability of national and European support for the development of the new technologies which will be necessary for the industry to meet the challenging EU emissions reductions targets.