Series Title | European Voice |
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Series Details | 30/01/97, Volume 3, Number 04 |
Publication Date | 30/01/1997 |
Content Type | News |
Date: 30/01/1997 By IRON and steel companies have frozen plans to launch an anti-dumping complaint with the Commission against low-priced imports from eastern Europe because of a fall in their volume. Eurofer, the grouping of EU steel producers, said the complaint is being shelved since imports from the East slowed down last year. But a spokesman warned: “We are staying vigilant. It is still a serious issue and we are prepared to launch an anti-dumping case if necessary.” Imports into the Union from eastern Europe in two of the past problem sectors, hot rolled coils and heavy and medium steel plate, fell between 1995 and 1996 by 16&percent; and 13&percent; a month respectively, according to the latest Eurofer figures. Commission figures indicate that overall imports into the EU dropped 19&percent; in the first half of 1996, with the trend expected to continue this year. However, adds Eurofer, even at such levels the low prices are destabilising the EU market. The group says localised problems remain: Greece is still being flooded with cut-price coils from Slovakia, Romania, Bulgaria, and Hungary; Italy has been targeted for imports from Slovakia, Bulgaria, and Hungary; and Germany by producers in Hungary. Imports of heavy and medium plate into western Europe from Romania surged by 8&percent; in 1996, with Germany, the UK, Spain, and France the main recipients. Although EU quotas exist for some steel products, these have a tendency to flood into a few markets, said one industry insider. However, the overall trend represents a turn around from 1994 when European producers witnessed a 15&percent; drop in exports and a 35&percent; increase in imports, mostly from central and eastern Europe and the former Soviet Union, still the region's biggest player. Figures then showed imports of wire rods boosted by 111&percent;, hot rolled coils up 87&percent;, heavy plate rising 50&percent; and steel sections up 26&percent;. Eurofer said the surge in imports sometimes forced prices down by as much as a quarter. But east European steel production was in a sorry state last year, with a 11.9&percent; fall in output to November compared with the previous year, according to figures from the International Iron and Steel Institute. Meanwhile, Commission officials and western steelmakers were in Moscow this week to try to push forward difficult talks on a five-year steel agreement with Russia and Ukraine. Such an accord, which would set a timetable for the gradual opening up of western markets, would be warmly welcomed by the EU steel sector. Under the proposed deal, Union quotas and other limits would disappear as Russia and Ukraine harmonised their rules on competition, state aid and environmental protection. “Full liberalisation would be impossible at the moment. There is so much excess capacity in Russia at the moment that the flood of imports would disrupt European prices,” said a steel industry spokesman. The prospects for the EU steel sector are positive this year, according to the Commission, with production and prices expected to rise. Key users such as the building industry and car producers are expected to increase demand in 1997 with an overall trend across industry towards a steady build up in stocks. EU exports are likely to remain steady after rising by 23&percent; in the first half of 1996, with the US and Asia (with the exception of Japan) being the main markets. Emerging markets such as Latin America, the Middle East, China, and South Korea are expected to take up some of the slack left by a further fall-off in US demand during 1997. |
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Subject Categories | Business and Industry, Trade |
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