Trade risks in the EU market are intense even amid growing demand for steel

The EU steel market started 2018 on a relatively strong footing, fueled by continued economic recovery and an improved business environment in steel-using sectors. However, imports continued to rise from already high levels in 2017.

During the forecast period 2018-2019. steel demand is expected to be flattened as growth in steel end use slows to a more stable rate of expansion. The recent rise in protectionist trade measures is deepening uncertainty and could lead to the market situation being different from the baseline scenario.

“The latest data confirms the serious impact of US Section 232 tariffs rejecting EU imports across nearly all product lines,” said Axel Eggert, CEO of the European Steel Association (EUROFER). “This spike comes at a time when growth forecasts are being revised on smoother trajectories. We cannot risk the ongoing recovery at stake. ”

Domestic shipments to the EU market rose 2.1% year on year to 37 million tonnes in the first quarter. Imports from third countries increased by 9.8% to 10 million tonnes, compared to the already increased level of imports recorded in the same period in 2017. As a result, imports reached their highest quarterly level since the third quarter of 2007. This confirms that the volumetric effects of the anti-dumping measures imposed by the European Commission during 2017 quickly disappeared as other third-country suppliers took advantage of the gap left by countries that applied tariffs to them.