Released October 09, 2019 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The small recovery of Europe's steel sector in recent years will reverse this year as imports spike, U.S. tariffs impact the market and apparent consumption is expected to fall by 0.4%.
The findings come from the European Steel Association's (Eurofer's) European Steel in Figures Report and paint what Axel Eggert, the director general of Eurofer, called a "mixed picture." The news comes at a time when the European Trade Commissioner-designate Phil Hogan called on the U.S. not to launch another round in the damaging tariff war with the European Union (EU) following a dispute over subsidies to Airbus and Boeing. "I would ask the U.S. to negotiate with us rather than having a tit-for-tat trade war that only does damage to both economies," Hogan said.
Last year, U.S. President Donald Trump imposed tariffs of 25% on steel imports and 10% on imported aluminium from the EU and Canada. In June 2018, Europe and Canada announced tariffs on up to $24 billion worth of U.S. goods in retaliation to the tariffs. The European Commission confirmed that import duties of 25% on a wide range of U.S. exports would be introduced in July, ranging from whiskey and tobacco to motorcycles, clothing, steel and foodstuffs. For additional information, see June 11, 2018, article - Europe, Canada Strike Back with Tariffs on U.S. Goods. In the coming weeks the U.S is expected to impose billions of euro in punitive tariffs on EU products after the World Trade Organization (WTO) ruled recently in favour of the U.S. in finding that the EU was guilty of illegally subsidising the European aerospace giant Airbus. Estimates put the forthcoming tariffs in the region of 8 billion to 10 billion euro ($8.7 billion-$10.9 billion).
Industrial Info is tracking more than 600 steel manufacturing projects worth $9.5 billion in Europe, excluding Russia. Click here for a list.
"European Steel in Figures 2019 paints a mixed picture of the sector," Eggert explained. "Employment has almost returned to levels last seen in 2014, with demand on the domestic market also having risen steadily for the past few years. The expansion of steel-using sectors continued, as it has for a few years. On the face of it, the overall performance of the steel market was relatively positive in 2018. Apparent consumption was up 3.3% in 2018 to 164 million tonnes of apparent consumption -- though there was a marked loss of momentum compared to 2017."
He added: "However, imports have exploded to new highs, and rising domestic demand has been almost entirely absorbed by this foreign supply. Steel-using sectors, such as automotive, are beginning to see reversals -- which has an impact on their current and anticipated demand for steel. Apparent consumption is expected to fall by 0.4% in 2019."
Imports of steel into the European Union have more than doubled in the past 10 years from 12.9 million tonnes in 2009 to 23.4 million tonnes last year. This comprised 75% flat products and 25% long products. Turkey is the largest supplier to the EU (21%), followed by Russia (12.7%) and South Korea (11.7%). In contrast, the EU exported 20.6 million tonnes of finished steel products in 2018--almost 3 million tonnes less than it imported--comprising 64% flat products and 36% long products. The U.S. was the largest single market for EU-finished products in 2018, accounting for 16.2%, followed by Turkey (15.4%) and Switzerland (9%).
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
The findings come from the European Steel Association's (Eurofer's) European Steel in Figures Report and paint what Axel Eggert, the director general of Eurofer, called a "mixed picture." The news comes at a time when the European Trade Commissioner-designate Phil Hogan called on the U.S. not to launch another round in the damaging tariff war with the European Union (EU) following a dispute over subsidies to Airbus and Boeing. "I would ask the U.S. to negotiate with us rather than having a tit-for-tat trade war that only does damage to both economies," Hogan said.
Last year, U.S. President Donald Trump imposed tariffs of 25% on steel imports and 10% on imported aluminium from the EU and Canada. In June 2018, Europe and Canada announced tariffs on up to $24 billion worth of U.S. goods in retaliation to the tariffs. The European Commission confirmed that import duties of 25% on a wide range of U.S. exports would be introduced in July, ranging from whiskey and tobacco to motorcycles, clothing, steel and foodstuffs. For additional information, see June 11, 2018, article - Europe, Canada Strike Back with Tariffs on U.S. Goods. In the coming weeks the U.S is expected to impose billions of euro in punitive tariffs on EU products after the World Trade Organization (WTO) ruled recently in favour of the U.S. in finding that the EU was guilty of illegally subsidising the European aerospace giant Airbus. Estimates put the forthcoming tariffs in the region of 8 billion to 10 billion euro ($8.7 billion-$10.9 billion).
Industrial Info is tracking more than 600 steel manufacturing projects worth $9.5 billion in Europe, excluding Russia. Click here for a list.
"European Steel in Figures 2019 paints a mixed picture of the sector," Eggert explained. "Employment has almost returned to levels last seen in 2014, with demand on the domestic market also having risen steadily for the past few years. The expansion of steel-using sectors continued, as it has for a few years. On the face of it, the overall performance of the steel market was relatively positive in 2018. Apparent consumption was up 3.3% in 2018 to 164 million tonnes of apparent consumption -- though there was a marked loss of momentum compared to 2017."
He added: "However, imports have exploded to new highs, and rising domestic demand has been almost entirely absorbed by this foreign supply. Steel-using sectors, such as automotive, are beginning to see reversals -- which has an impact on their current and anticipated demand for steel. Apparent consumption is expected to fall by 0.4% in 2019."
Imports of steel into the European Union have more than doubled in the past 10 years from 12.9 million tonnes in 2009 to 23.4 million tonnes last year. This comprised 75% flat products and 25% long products. Turkey is the largest supplier to the EU (21%), followed by Russia (12.7%) and South Korea (11.7%). In contrast, the EU exported 20.6 million tonnes of finished steel products in 2018--almost 3 million tonnes less than it imported--comprising 64% flat products and 36% long products. The U.S. was the largest single market for EU-finished products in 2018, accounting for 16.2%, followed by Turkey (15.4%) and Switzerland (9%).
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
