The European Confederation of Iron and Steel Industries (EUROFER) has stated that the financial market crisis requires a strong response from the EU to secure the viability of the EU steel industry.
According to EUROFER, steel demand globally - and in the EU in particular - has hugely declined as the financial crisis has pushed the economy into recession. The steel-intensive sectors that have been most affected by the financial downturn are construction, automotive, and the sectors which supply them, such as equipment, parts and components suppliers.
In an effort to rebalance domestic supply and demand, the EU steel producers have been making the necessary response by cutting production temporarily; however, these responsible adjustments of production by the EU steelmakers are nullified by third countries exporting their excess and, in some cases, subsidized production to the EU.
Therefore, EUROFER asks the European Commission and the member states to ensure that they remain vigilant and take the necessary action in the event of market-disrupting import flows from third parties, as the risk of opportunistic export surges to the EU from third countries is an imminent threat.
Addressing the EC, EUROFER director general Gordon Moffat said that the Confederation requests the use of the trade defense instruments available to counter any unfair trade practices which are triggered by massive subsidization and pervasive government intervention in third countries. He also added that there should be no hesitation in the use of the trade defense instruments should they prove necessary.