[Ferro-Alloys.com] Affected by the coronavirus, European steel enterprises will face a 75% reduction in new orders, according to Eurofer. At present, the downstream demand for steel in Europe is extremely low. The reduction of automobile enterprises production is almost 70%-80%, and the construction activity is reduced by about 40%. Other manufacturing industries are also reducing production. It is expected that 50% of the steel production capacity of major European steel enterprises will be forced to stop production, and about 40% of the labor force will be affected by temporary layoffs and reduced working hours.

 

Compared with steel mills in other parts of the world, European steel mills cut production faster. According to the statistics of the World  Steel Association, the crude steel production of 28 countries in the European Union fell by 10% in the first quarter of this year compared with the same period last year, while the decline in March reached 20.4%. Crude steel production is expected to decline further as new orders from steel companies decline. (Translated by editor)