EUROFER: Low-priced imports benefit most from fragile recovery in EU

The latest EU customs statistics show that third country imports remained on a rising trend in July and August, according to the European Steel Association (EUROFER). During the July-August period, finished steel imports of the EU rose 32 percent year on year, compared with a six percent rise in the first quarter and a 33 percent rise in the second quarter, both year on year. This means that over the first eight months of this year total finished steel imports rose 21 percent. In the first eight months, while the EU's flat product imports grew 15 percent year on year, long product imports increased by a staggering 49 percent.
 
These growth rates of third country imports arriving in the EU contrast sharply with the only very moderate growth of apparent consumption. EUROFER statistics show demand for finished steel products in the first half of 2014 rising almost 5.5 percent compared with the corresponding period of 2013.
 
EUROFER said that growth of around 3.5 percent in apparent steel consumption is foreseen for 2014, reflecting the usual seasonal destocking in the second half of the year. This underpins that the rebound in steel demand is only gradually gaining momentum.
 
"That is exactly the reason why we are so concerned about the sharply rising trend in imports we are observing since the start of the year. Low-priced imports benefit more from the fragile recovery in the EU market than domestic producers. Moreover, the combination of volume and pricing effects exacerbates the already severe margin pressure in the EU steel sector," said EUROFER's interim general director Axel Eggert.