Eurofer: Steel Demand of EU Increased 2.5% This Year but Still Worried about Import Shock
The European Union for steel (Eurofer) now sees that, benefiting from the recent strong economic activity, European steel demand of this year will increase by 2.5%. While the demand for major steel sectors is growing cautiously, it is determined that demand for the automotive, manufacturing and construction sectors is growing slowly over the next two years. Following the 2016 increase by 3.2%, the EU steel sector in 2017 and 2018 will increase by 2% -2.5%, higher than the previous expected 2%.
Despite the demand was recovered, people also worried about that increased import might come as a shock to the local markets. Eurofer pointed out that imports had grown substantially for three consecutive years, and China's exports to the EU had been reduced by imports from other countries, for example, the exports of India, South Korea and Turkey increased significantly. Recently, the decline of China's domestic price has brought opportunities for exports, at past two weeks, China's cold volume exports to the EU began to increase, even including anti-dumping duties, the price of 560-580 euros/ton (CFR) was also much lower than the Nordic cold volume ex-factory price 640 Euro/tonne. Of course, some people dare not take risks, still choose to import from Vietnam at 600-610 euros/ton(CIF) prices.
In June 2016, the EU final decision decided to levy 19.8% -22.1% anti-dumping duties for China's imported cold rolling. If China's exports cold rolling to the EU continue to increase, we do not exclude that the European Commission will raise the anti-dumping tax rate, China's export enterprises (Prime Steel Pipe) will pay close attention to it.