European steel industry recovery threatened by unfair international competition
EU finished steel imports have surged since the start of the second half of 2010, almost doubling in August-September (+82% year-on-year). This surge has weakened the already uncertain recovery in the EU steel market. With one in three tonnes coming from China, hot-rolled coil (HRC) imports have reached 25% of the total EU market supply since July, up from 15% in the first half of this year. Import monitoring by EUROFER has revealed intensifying HRC price undercutting of up to 25%, with the largest margins originating in China and Ukraine.
In addition, during the financial crisis non-EU countries that are home to around 65% of global steel production introduced measures to protect their home industries. Even now, following the crisis, some countries where steel demand is growing and steel prices are rising have been taking further action, such as ad hoc product quality testing on individual cargoes and minimum prices as a basis for calculating import tariffs. These measures are hampering import flows and shielding domestic markets from increasing import competition. Other countries, looking to replace imports by bringing new capacities on stream, are considering significant increases in steel import tariffs (Arab region).
“Ignoring the fragile European steel demand situation, surging imports are unfairly grabbing market share in the EU, the only major steel market in the world which has remained completely open,” Gordon Moffat, Director General of EUROFER, points out. “We are stepping up our monitoring of imports and our screening of third- country steel protectionism as we prepare an appropriate response.”
Represented by EUROFER, the European steel industry is a world leader in its sector with a turnover of EUR 190 billion and direct employment of 420 thousand highly skilled people, producing 200 million tonnes of steel per year. More than 500 steel production and processing sites in 23 EU member states provide direct and indirect employment and a living for millions of European citizens.
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