According to the Economic and Steel Market Outlook 2013-2014/Q1 2013 Report from the Economic Committee of the European Steel Association (EUROFER), in the first 11 months of 2012 European Union (EU) steel exports increased by 11 percent year on year. EUROFER stated that the second half of last year was characterized by an acceleration in the rise of semi-finished steel exports, whereas the increase in flat and long product exports slowed down compared with stronger growth in the first half.
According to the report, in the January-November period last year the steel trade surplus of the EU amounted to an average of 675,000 mt per month. The surplus was dominated by long product exports, while reinforcing bars accounted for almost 60 percent of total long product exports. Meanwhile, the trade deficit in semi-finished steel eased in the second half of the year owing to the increase in exports.
In the January-November period, Algeria accounted for almost 60 percent of the EU's total rebar exports. Algeria was also the main country of destination for EU exports of wire rod and merchant bar in the given period. On the other hand, Turkey was the largest market for steel sections.
According to EUROFER, European steel exports are expected to stagnate at 2012 levels in 2013. As long as domestic demand remains sluggish, producers of long products for construction applications in particular will try to maximize exports in order to keep production capacity utilization rates as close as possible to reasonable levels. However, fierce international competition and the stronger euro will limit any further growth potential in the key export markets.
The association has predicted a marginal year-on-year increase in EU steel exports in 2014, noting that, although global steel demand fundamentals are expected to improve, rising capacity outside Europe will fuel international competition.