Weak demand in emerging countries may hit EU flat steel industry

Speaking at Platts Steel Markets Europe conference held on June 1-2 in Barcelona, Gonzalo Delgado, ArcelorMittal Flat Products BD South West CMO, said that flat steel demand in the EU has gradually recovered though, if weak demand prevails in emerging countries, the EU flat steel industry may be negatively affected.
 
Jeroen Vermeij, director of market analysis and economic studies at the European Steel Association (EUROFER), stated that profit margins in the EU steel industry are under downward pressure mainly due to the slow growth in EU demand, market share competition between EU and importing countries, and additional production costs caused by environmental restrictions in the EU.
 
Regarding the recent antidumping investigations, Mr. Vermeij said that the EU is concerned about increasing imports from China both in flat and long product segments, adding that, while Turkey is the main long steel importer to the EU, it respects EU trade regulations.