International Steel Mills
Steel Imports Concern for EUROFER
Written by Sandy Williams
February 7, 2015
EUROFER, the European Steel Association, says high levels of steel imports into the European market are “distorting traditional steel trade flows.” Steel imports into the European Union (EU) rose by more than 14 percent.
EU steel use grew hesitantly in the second half of 2014, rising just 3.3 percent in 2014. “Weak business conditions in EU core markets France and Italy and slowing growth in almost all large emerging economies as well as Russian trade sanctions acted as a drag on output growth,” said EUROFER.
The steel market in the EU is expected to slowly strengthen in 2015-2016. Apparent consumption is expected to rise 1.9 percent this year and 2.6 percent in 2016, driven by stronger demand and modest restocking of inventories in the supply chain and at end-users.
The EU economy should benefit from the weaker Euro and low oil prices said EUROFER Director General Axel Eggert. “ECB’s quantitative easing programme and the Junckers investment plan should for the time being at least have a positive impact on sentiment. All in all, we expect to see a positive impact on exports, domestic demand and investment in particular.”
Eggert added that downside risks and uncertainties continue to exist. High import pressure from production oversupply is “fueling competition and depressing prices and profit margins.” EUROFER fears Russian exports may rise sharply as Russian steel mills look to the EU to offset sluggish domestic sales.
The full Economic & Steel Market Outlook 2015-2016 report may be found at the EUROFER website http://eurofer.org
Sandy Williams
Read more from Sandy WilliamsLatest in International Steel Mills
Nippon requests Japan’s government restrict steel imports from China
Nippon Steel and other Japanese steelmakers are lobbying for the Japanese government to limit imports of Chinese steel, according to a report in Reuters.
SSAB taps Sjöström as new president, CEO
SSAB has appointed Johnny Sjöström as president and CEO of the Swedish steelmaker.
ArcelorMittal Q2 earnings dive, Mexican strike hits profits
ArcelorMittal’s earnings fell precipitously from a year earlier as the company said current market conditions are unsustainable.
Nippon withdraws from JV with China’s Baosteel
Japan’s Nippon Steel announced it was withdrawing from a joint venture (JV) with China's Baoshan Iron & Steel (Baosteel) that served the Chinese automotive industry.
SSAB adjusts output in weak Q3, readies for Q4 rebound
SSAB said lower plate prices in the US were the primary reason for reduced results in the second quarter. With a dismal Q3 outlook, the Swedish steelmaker is adjusting production across its facilities. That includes moving up its annual US mill outage in anticipation of a better Q4. SSAB Americas Revenues in the Americas segment […]