Import Pressure Continues to Hamper Steel Trade

SEATTLE (Scrap Monster): The European Steel Association (EUROFER) stated that import pressure continues to hamper steel trade in the region. The steel market continues to remain depressed despite revision to EU steel safeguard measures aimed at protecting domestic steel sector.

Axel Eggert, Director General, EUROFER noted that the largest part of the steel sector is still being squeezed. The subdued market conditions have impacted the entire steel value chain. Thousands of industry jobs are being affected. The steel producers are seen reporting eroding margins. As a result, they have either curtailed production plans or temporarily closed new installation across Europe.

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According to EUROFER, the regional steel industry has suffered several setbacks over the past few years. The market has not yet fully recovered from the 2008 economic crisis. The rising imports of steel products have offset the sector growth during this period. Global steel overcapacity and dumping from other countries, mainly from Turkey, Russia and China, have squeezed the margins across the sector.

The existing safeguard measures alone have not been able to completely address the sector worries, EUROFER noted. The safeguard measures need dynamic revisions. Also, necessary measures need to be taken to ensure that countries including China, Indonesia, Iran, Russia and Turkey stop building up excess steel capacity.