According to the Economic and Steel Market Outlook 2012-2013/Q4 2012 Report from the Economic Committee of the European Steel Association (EUROFER), in the first eight months of 2012 European Union (EU) steel exports increased by 15 percent year on year. The EU's steel exports had increased by 5.2 percent in the first four months of the year on year-on-year basis, according to the association's previous Economic and Steel Market Outlook 2012-2013. EUROFER stated that the significant reduction in imports and the increase in exports resulted in the EU again becoming a net exporter, after having registered a slight trade deficit in 2011.
According to the report, in January-August this year the steel trade surplus of the EU amounted to 561,000 mt per month over the first eight months of this year. The surplus was dominated by long product exports which increased further in comparison with the same period of 2011. Reinforcing bars accounted for almost 60 percent of total long product exports. Meanwhile, the trade surplus in flat products remained relatively moderate, while in semi-finished products the EU remained a net importer.
In the January-August period, the North African market and especially Algeria remained the key nearby export destinations, with Algeria accounting for almost 60 percent of total rebar exports.
According to EUROFER, as long as domestic demand conditions remain depressed, particularly producers of commodity long products used in the construction sector will remain focused on exports. International competition is getting fiercer, though. Despite output cuts, Chinese exports rose to a very high level in August. In the Middle East, new capacity is coming on stream, with mills trying to secure market share. For the moment, the weaker euro will be supportive of exports.
The association has predicted a 4.5 percent year-on-year increase in EU steel exports in 2012 and a similar year-on-year increase in 2013.