The European Steel Association (EUROFER) has stated that in the third quarter of 2015 apparent steel consumption in the European Union increased by 2.7 percent and steel imports rose by 29 percent, both on year-on-year basis. According to EUROFER, the rise in imports in the given quarter was too much to be fully absorbed by end-users, and so, with real steel consumption stabilizing around the level of a year earlier, the oversupply in the market ended up in stocks.
EUROFER director general Axel Eggert said, “Third countries’ imports have swollen to the highest quarterly level since the second quarter of 2011. This ballooning of imports confirms our fears that third country suppliers are the main beneficiaries of current market conditions. Their increase in market share is coming at the expense of domestic producers. EU producers are not winning from demand growth in their own market; domestic orders are under pressure.”
Mr. Eggert went on to comment, “The outlook for 2016 and 2017 is for a gradual further improvement in EU steel demand. The expected steady strengthening of end-user activity should translate into a mild growth of steel demand of on average almost 1.5 percent per year. However, the key uncertainty with respect to actual market conditions for EU steel mills is third country exports. China should stop exploiting the export channel for its overproduction due to domestic steel demand having peaked. If this continues, EU mills will lose further market share, not only in the EU but also in their key export markets.”