At MetalBulletin's 11th Steel Success Strategies conference held in Istanbul on February 18-20, ArcelorMittal Flat Carbon Europe vice president Jean-Martin Van der Hoeven discussed the differences in raw material costs between integrated and EAF steel producers, stating that the integrated steel producers have the upper hand in terms of these costs.
Mr. Van der Hoeven cited the differences in raw material costs as the main reason for Morocco's ongoing antidumping duty investigation launched in January 2013 against hot rolled flat steel imports from Turkey and the EU, because the petitioner, domestic EAF steel producer Maghreb Steel, is not able to reduce its prices to the price levels of the integrated steel producers who export to Morocco.
Van der Hoeven stated that steel demand in Europe has declined by 25 percent since 2007 and that the recovery in Europe is quite slow. Regarding the situation in the Middle East, he said that the iron and steel industry in the region is expected to grow by five percent each year, lagging behind the growth rates in the Turkish steel industry. He added that domestic production in the Middle East will not block imports and that foreign partners will continue to be welcomed in steel consuming projects.
Mr. Van der Hoeven concluded by remarking that the Middle East has become a dumping ground for Asian steel industry players.