Wolfgang Eder, CEO of Austrian steel company voestalpine AG, has stated that there is at least 20 percent overcapacity in the European steel market, in an interview with Austrian business and financial news agency FriedlNews.
Mr. Eder said that current European Union steel production capacity is around 210 million mt per year, equal to the EU demand volume in 2007, while current EU steel demand amounts to only 160 million mt. The peak demand level seen in 2007 will not be achieved again within the next 10 years, he said.
Voestalpine CEO Eder also stated that in the long term the major rivals of the European steel industry will not be Chinese or Indian competitors, but will instead be Russian, Turkish and Ukrainian steel producers. At present, Eder said, China exports 8 million mt of steel to Europe per year; however, transport costs amount to €50/mt.