The growth in demand for steel has benefited from the recovery of the US construction industry and the automobile industry, but the situation in Europe is not optimistic.

European steel production will end its six-year decline and is expected to achieve a 2.4% year-on-year growth in 2014. China's steel production growth was 4%, lower than the 6% growth in 2013. The two are offset, and the global steel industry output is expected to increase in 2014. A survey of 15 steel industry analysts showed that world steel production will increase by 3.6% in 2014.

Matthew DeMorgan, chief executive of Dufk, the world's largest steel trading company, said: "In terms of production, the steel industry has bottomed out and will usher in a more prosperous 2014, but price outlook. Not particularly bright."

Marcus Ketter, Europe's largest steel distributor and financial director of Kloeckner in Germany, said that the growth in demand for steel has benefited from the recovery of the US construction industry and the automobile industry, but the situation in Europe is not optimistic. “We hope that US steel demand will grow strongly, and our company has made some major acquisitions to optimize the structure of the company.”

MarcusKetter said, “The real difficulty is still in Europe. There is no real driving force in Europe to promote the recovery of the steel industry, and the situation in the US is exactly the opposite. We are not so optimistic about Europe. In 2014, the steel industry in Europe is still in a low valley. A slight improvement.” He believes that the problem in the European steel industry is oversupply, and there is no new demand. “The automobile manufacturing industry should improve, but the construction industry has not made much progress.” “In the United States, the automobile manufacturing industry and The construction industry has improved a lot. As energy prices continue to fall, the demand for steel in the machinery and equipment market is expected to increase. At present, there is basically no oversupply in the US steel industry."

MarcusKetter's pessimism about the prospects of the European steel industry is not unreasonable. From the financial crisis of 2007 to the subsequent sovereign debt crisis, Europe has not emerged from the predicament.

A survey of 33 CFOs from Europe and Asia showed that two-thirds of participants said they believe the global economy is improving steadily, with more than half saying they will expand their talents over the next six months.

Alexey Kulichenko, chief financial officer of Severstal Steel, Russia's second-largest steelmaker, believes that steel prices will bottom out and will slowly recover. Severstal Steel said that global steel prices may have reached their lowest point, but the rise is very slow, and the average price in 2014 is likely to be comparable to the lowest level in 2013.

Alexey Kulichenko said: "We believe that the steel industry continues to have little space left, so I think the global market has basically reached the bottom." In addition, he believes that overcapacity will hit the recovery. “Based on observations of overcapacity areas, we have come to the conclusion that the steel industry will not recover quickly in the short term.”

ArcelorMittal, the world's largest steelmaker, also said it believes the steel industry has passed its lowest point. Company CEO LakshmiMittal said that the company's two-year downturn has bottomed out.

Since the acquisition of the European steel company Corus in 2007, Tata Steel has been in a bad situation. Recently it said that the situation has improved, but the challenge remains.

Although the outlook for the steel industry is promising, the top steel industry analysts believe that the steel industry still has some problems that cannot be ignored. These problems will continue to drag down the profitability of steel companies and hinder the steel industry from achieving a full recovery.

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