Eurofer / News & Publications / Press Releases / Financial market crisis requires strong response of the EU to secure viability of the EU steel industry
Financial market crisis requires strong response of the EU to secure viability of the EU steel industry
Steel demand globally - and in the EU in particular - has hugely declined as the financial crisis has pushed the economy to recession. The steel using sectors hit most directly are construction, automotive, and the sectors which supply them, such as suppliers of equipment and parts and components. All of these sectors are steel-intensive.
EU steel producers are now, individually, making the necessary response by cutting production temporarily, seeking to rebalance domestic supply and demand. “Given the current economic conditions severely impacting the steel sector, market forces and market-driven behaviour are now more important than ever. We ask the Member States and the Commission to ensure that recent EU steel producers’ responsible adjustment of production to demand is not nullified by third countries exporting their excess and, in some cases, subsidised production to the EU”, says EUROFER director general Gordon Moffat. “However, in today’s highly fragile market situation, the risk of opportunistic export surges to the EU from third countries which have failed to address their massive excess capacities is an imminent threat. We are therefore calling for the Commission and the Member States to remain vigilant and to take the necessary action in the event of market-disrupting import flows. We request the use of the trade defence instruments available to counter any unfair trade practices which are triggered by massive subsidization and pervasive government intervention in third countries. There should be no hesitation in the use of the trade defence instruments should it prove necessary.
Represented by EUROFER, the European steel industry is the world leader in its sector with a turnover of EUR 140 billion and direct employment of 370 thousand people, producing 200 million tons of steel per year.
Contact
Karl Tachelet, Director Trade and External Relations +32 2 738 79 49 (k.tachelet@eurofer.be)
Axel Eggert, Director Public Affairs +32 2 738 79 34 (a.eggert@eurofer.be)