INDUSTRY NEWS
Curbs on steel demand
Franz-Xaver Bernhard , Chairman , VDW ( Photo : VDW ).
provide extra support for young people as they go through the school-career transition system .
In 2022 , there were officially 240,000 students in German vocational colleges . They can take their school-leaving exams , make their first contacts with employers or complete state-approved vocational training . This is not a substitute for dual training .
The Youth Education and Development Foundation for Mechanical Engineering is therefore launching a project in North Rhine- Westphalia this year to introduce pupils in the transition system to metalworking occupations . The project includes advising companies on all issues relating to training and to the creation of an innovative trainee recruitment system , coaching young people in the transitional vocational college system re careers in the metal industry and matching them with companies that provide such training . In addition , the young peoples ’ professional , personal and social skills are honed in workshops to prepare them as well as possible for the apprenticeship itself and to prevent them from dropping out at a later stage .
“ The main focus of education policy should be on investing more in careers guidance , optimising the transition from school to work and providing intensive coaching for pupils so that they can join regular apprenticeship schemes . Instead , the Youth Education and Development Foundation for Mechanical Engineering states that funding programs for downstream projects are being cut ,” said the VDW Chairman .
“ In the long term , and in light of skills shortages , we as a society cannot afford to have such a large number of people with no vocational training . We are therefore delighted at the great interest being shown by companies and vocational colleges in our initiative ,” concluded Bernhard . n
Lingering adverse conditions are set to exacerbate the recession in 2023 while slowing down the anticipated steel market recovery in 2024 , commented EUROFER ( the European Steel Association ) recently .
“ Ongoing conflicts , prolonged uncertainty in energy prices and monetary tightening due to persistent inflation , combined with a bleak economic outlook , have further impacted apparent steel consumption ( -6.3%) over the past year . This unpredictability is expected to constrain its rebound (+ 5.6 %, previously projected at + 7.6 %) in the current year , against the backdrop of subdued industrial output (+ 0.2 %) in steel-using sectors . Despite dwindling demand , imports steadfastly uphold their market share ( 27 %) which exceeds historical levels ,” said the association .
“ The European steel industry cannot yet see the light at the end of the tunnel . None of the factors contributing to the decline in steel demand and production have improved , nor are they expected to improve in the foreseeable future . We still lack solutions for high energy prices , and new instruments such as the Carbon Border Adjustment Mechanism and the Global Arrangement on Sustainable Steel and Aluminium are neither fully in place nor agreed upon yet to effectively address highcarbon imports and global steel excess capacity . We urgently need a European Industrial Deal if we are to secure a future for the steel industry and its entire value chain in the EU ,” said Axel Eggert , Director General of the European Steel Association ( EUROFER ). “ In the
Steel coils ( image : EUROFER ). third quarter of 2023 , apparent steel consumption experienced its sixth drop in a row ( -3.9 %), shrinking to 30.4 million tonnes . This marks the third-lowest volume recorded since the pandemic . Quarterly improvements in apparent steel consumption are not expected until the first quarter of 2024 , while the outlook remains highly uncertain , resulting in a more pronounced contraction for 2023 ( -6.3 %, previously estimated at -5.2 %) and in a less substantial recovery for 2024 (+ 5.6 %, revised downwards from + 7.6 %). Consumption volumes , nonetheless , are projected to remain far below prepandemic levels ,” added the association .
Similarly , domestic deliveries remained in line with subdued demand throughout the third quarter of 2023 , marking their sixth consecutive decline ( -2.9 %). Imports remained stable , but their share out of apparent consumption has remained considerably high in historical terms also in the third quarter ( 27 %).
“ In the same period , steel-using sectors ’ output , which had previously shown unexpected resilience amidst downward pressures , entered negative territory ( -0.3 %) for the first time . This was the result of a continued downturn in most key sectors , notably construction ( impacted by higher interest rates ), mechanical engineering , domestic appliances and metalware . The contraction was only partly offset by the positive performance of the automotive sector , which recorded its sixth consecutive increase ,” said EUROFER .
“ Steel-using sectors ’ output is projected to modestly increase (+ 0.7 %) in 2023 and further slow in 2024 (+ 0.2 %, halved from + 0.4 %), following the second consecutive recession in the construction sector . Growth is forecasted to moderately accelerate (+ 1.5 %) in 2025 ,” it added . n https :// vdw . de / en /
Image : EUROFER . www . eurofer . eu
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