Lack of trust, not simply high interest rates, concerns panellists at the Kallanish Europe Steel Markets 2024 conference in Milan.
As a result of both, the market participants are hesitant to suggest that demand will increase before 2025.
Alessandro Fossati, managing director of Gamma Trade, says he does not believe a lowering of borrowing costs would be enough to stimulate more consumption this year.
“It’s not enough to cut interest rates to boost demand. Demand depends on trust,” Fossati asserts. “We should have a way to earn back the trust in the economy. That would allow investors to invest and consumers to consume.”
S. Polo Lamiere SPA’s chief executive officer, Tommaso Sandrini, underscores Fossati’s sentiment.
“I do not see any possibility of significant recovery in the investment cycle. …We have all the geopolitical elements that we are discussing, and there is a huge lack of confidence in Europe from my point of view,” Sandrini declares: “I do not see any possibility for demand to increase before the end of the year.”
Julian Verden, Stemcor Group’s managing director for Europe, offers a counter stance.
“If you look at steel consumption, it’s pretty steady globally,” observes Verden. “There is very good demand. It is just not great demand in Europe. The European industries are struggling, but I think that protectionism, like that in the states, will protect our industries.”
Kristen DiLandro USA
