In the third quarter of 2009, steel exports from European Union member states (EU-27) to third countries stabilized at the level registered in the preceding quarter; meanwhile, in the year-on-year comparison, exports also saw a stabilization - according to the "Economic and Steel Market Outlook 2010-2011" report released by the European Confederation of Iron and Steel Industries (EUROFER).
First estimates for the final quarter of last year indicate that steel exports remained broadly stable at similar levels to those seen earlier in the year. Overall, EU steel exports are estimated to have declined by almost nine percent in 2009.
On balance, the EU became a net steel exporter again last year for the first time since 2005. The trade surplus, however, was registered only in long products, most notably in reinforcing bars. In contrast, exports of all flat products, particularly of strip mill products and quarto plate, fell substantially in 2009 compared with 2008.
Demand for construction-related steel products such as rebar in North Africa and the Middle East remained relatively firm compared to markets in Europe. However, with large projects drying up in this region because of funding issues, export opportunities will shrink for the time being.
Meanwhile, the expected improvement in global steel market conditions has broadened the scope for EU exporters in terms of products and regions. Consequently, EU steel exports are expected to increase moderately in 2010; exports are forecast to be almost four percent up on 2009.
The outlook for 2011 is for a slight decline compared with 2010. The EU market shifting into a higher gear will lead to EU steel mills focusing primarily on expanding sales in their domestic markets instead of in the international export markets.