In the January-April period this year, the EU’s total steel exports fell 19 percent, while its finished steel product exports decreased by 10 percent, owing to a nine percent reduction in flat product exports and an 11 percent drop in long product exports, all year on year, according to the Economic and Steel Market Outlook 2016-2017/Q3 2016 Report from the Economic Committee of the European Steel Association (EUROFER).
EUROFER said that the negative development in EU steel exports reflects overall weak global steel demand conditions which in combination with overcapacity problems have fuelled competition and unfair trade practices. The resulting remedial measures against import distortions have exacerbated the fight for tonnages in the remaining markets. As a result of rising imports and falling exports, the EU remained a net importer of steel products, EUROFER stated.
According to EUROFER, the available customs data for 2016 underpin earlier fears that market conditions in international steel trade would remain difficult. There is no evidence that an improvement is to be expected for the second half of this year. Prospects for 2017 are anticipated to be slightly better, at least with regard to demand-side fundamentals.
EUROFER also stated that, as far as the supply side is concerned, the situation remains highly uncertain taking into account that other than in the EU there is no clear evidence of a significant net reduction in steelmaking capacity at a regional or national scale. This fuels concerns of continued distortions of the EU supply-demand balance by third country exports.