The European Union steel sector, faced with a tumble in demand this year due to the COVID-19 pandemic, is preparing for a potential collapse in talks between the United Kingdom and the EU on a future trade deal, an industry group said on Wednesday.The two sides resumed talks in London on Tuesday to try to strike a last-minute trade agreement less than 10 weeks before the United Kingdom leaves the bloc's orbit"Brexit remains a threat because there's a high likelihood that we will get at the end of the day a no-deall scenario, and we are gettina prepared for that" said Alessandro Sciamarelli, an official with the European Steel Association (Eurofer). "At Eurofer, we are very much against a no-deal Brexit"He said EU steel consumption is due to fall by about 14.6% this vear after the COVID-19 pandemic hi industrial activitv, especially the auto sectorApparent crude steel demand - which measures steel producers" output plus imports minus exports - slid by 25.5% in the second quarter, the biggest drop ever recorded, Sciamarelli said.Steel demand is forecast to bounce back by 13.1% in 2021, but a second wave of the CoVID-19 makes the iming of the recovery uncertain, he added. "The outlook for 2021 is very much affected by pandemic developments and the extension of this new wave we're having.Among steel-using sectors, construction has been the least affected. with a 3.6% fall in outout forecast for this year. Automotive has been the hardest hit with the decline seen at 20.6%.While imports have declined along with demand. Eurofer reiterated its call for stricter EU safecuardina measures due to worries that rising outout elsewhere will lead to a future surge in shipments.
