On December 17, the European Commission (EC) decided to prolong the current import surveillance system covering trade in steel products until December 31, 2012. At the same time, product coverage has been updated and now also includes flat stainless steel products and large welded tubes.
With the overcapacity problem faced by the global steel industry, the system will allow the EU to monitor sudden changes in the world steel market.
Following the decision, the European Confederation of Iron and Steel Industries (EUROFER) released a statement today, expressing its satisfaction with the decision of the European Commission.
"This decision reflects the openness of the European steel market and therefore its vulnerability to sudden import surges. Rapid, advance information of sudden changes in trade flows is essential," reads the statement
Accordingly, EUROFER director general Gordon Moffat commented, "The burden-free automatic licence-based system is a reliable tool of accurate and timely information on anticipated steel imports. Advanced statistical information is critical for our industry permitting rapid analysis of increasingly volatile steel import trends."
"In the current context of excess capacity worldwide driven by the huge over-capacity situation in China together with the protectionist measures adopted by all major steel regions outside Europe, there is a significant risk of diversion of trade flows to the European market. This measure by the Commission and member states is recognition of this threat and therefore a prudent precautionary measure," Moffat added.
"In the current vulnerable situation of weak steel demand and affected employment, the European steel industry is faced with an imminent threat of severe injury from imports as some recovery of steel demand in Europe is expected," he concluded.