Trade Resources Industry Trends Eurofer Indicated:The Stronger Euro Will Limit Any Further Growth Potential of Exports

Eurofer Indicated:The Stronger Euro Will Limit Any Further Growth Potential of Exports

According to the 2012 review of the steel market published by the European Steel Association (EUROFER), crude steel production in the European Union amounted to 168 million mt in the given year, down five percent compared to 2011. Similar to the situation in 2011, crude steel output in the second half of 2012 was well below production in the first half of the year, as EU steel mills adjusted production in response to weakening real steel consumption and inventory reductions in the steel distribution chain. The share of the EU in total global crude steel output decreased to eleven percent in 2012.

In 2012, EU real steel consumption decreased by around five percent, mainly as a result of weakening activity in the steel-using industries in the EU. EUROFER expects these negative trends to continue in 2013. On the other hand, EU apparent steel consumption decreased by almost 10 percent in 2012, particularly in the second half of the year.

"With end-user fundamentals forecast to remain depressed until late 2013, the EU market will continue to lack positive demand-side impulses for the greater part of the year," said EUROFER director general Gordon Moffat.

EUROFER indicated that the total third country imports into the EU decreased by 27 percent to 21 million mt in 2012, because of the combination of sluggish demand and a weakened euro. Additionally, imports from Ukraine, Russia and China continued to dominate total imports arriving in the EU, accounting for 66 percent of total import supply in 2012.

EU steel exports to third countries rose nine percent year on year in 2012. EUROFER stated that semi-finished steel products exports increased by 71 percent but the volumes accounted only for twelve percent of total steel exports. The increase in flat and long product exports were four and five percent respectively in 2012 as compared to 2011.

Regarding 2013, EUROFOER expects exports to stagnate at the 2012 level. The domestic market will remain sluggish. However, EUROFER indicated that international competition and the stronger euro will limit any further growth potential in the key export markets.

Source: http://www.steelorbis.com/steel-news/latest-news/eurofer-eu-steel-exports-not-likely-to-increase-in-2013-752113.htm
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Eurofer: EU Steel Exports Not Likely to Increase in 2013
Topics: Metallurgy