Iron or Steel Flat-Rolled Product Market - Europe is Shielding Itself With a Steel Barrier

Basic Iron And Steel August 24, 2016
EU - Flat-Rolled Products Of Iron Or Steel (Not Further Worked Than Cold-Rolled) - Market Analysis, Forecast, Size, Trends and Insights

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Abstract
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Table of Contents

Photo: © khac thanh / Bigstockphoto

The countries of the EU area followed the USA's lead at the beginning of August 2016, by imposing an anti-dumping tax on Russian and Chinese cold-rolled steel for a five year term. Chinese companies are now facing an anti-dumping duty rate of X%, and Russian companies - X%. This has caused by Eurofer, the European Steel Association, filed a complaint to the European Commission regarding the introduction of these restrictions.

Lower Russian and Chinese steel prices against the EU price of steel, classed as dumping, acted as the impetus for the investigation and the subsequent introduction of duties on cold-rolled steel from Russia and China. Restrictive measures then assumed the form of an anti-dumping tax, intended to enhance the position of the EU steel manufacturers at a time when the European steel industry is in crisis.

2015 year-end results indicate that steel output contracted in Germany (-X%), Italy (-X%), France (-X%), the U.K.(-X%) and Austria (-X%). An imports rise in Russian and Chinese rolled steel significantly intensified competition on the EU market. From 2011 through to 2015, therefore, the Chinese rolled steel share on the EU market increased from X% to X%, and the Russian share from X% to X%.

It is worth noting at this point that the EU market is more important to Russian steel producers, than the Chinese. Most rolled steel exports from China (approx. X% in 2015) were aimed at the ASEAN-block countries, South Korea, and the Gulf States. Approximately X% of the Russian steel manufacturers' income (companies such as NLMK and Severstal) originates from the EU; for MMK, this EU income figure was X%. 

According to data from the IndexBox Marketing research agency, losses incurred by Russian companies as a result of the anti-dumping tax will amount to approximately X% of annual EBITDA. In response to this, Russian companies are considering the possibility of increasing hot-rolled steel exports to the EU, as these remain unaffected by the duties. In July 2016, however, the European Commission initiated an investigation into hot-rolled steel exports from Russia; the investigation is to be conducted over the next X months. Should anti-dumping duties be introduced on hot-rolled steel, the losses incurred by Russian steel manufacturers will be much more severe than for those regarding cold-rolled steel. 

It is expected that the incoming cold-rolled steel duty will weaken competition levels in the EU market, thereby resulting in a prices increase. Baosteel Group, therefore, one of the largest Chinese and international steel manufacturers, intends to raise the price of rolled steel by X yuan (approx. USA $X) per tonne in September 2016. This may act as a definite signal to the world's other steel producers, who may then also follow suit, by instigating a price hike, like the Chinese. A scenario such as this may be beneficial for those companies under the Russian holding NLMK, which are based in Belgium, Denmark, Italy and France: their production capacity is currently not at full stretch. 

The trend of putting protective barriers in place on the cold-rolled steel market has already passed way beyond the one year mark, but protectionist measures became more aggressive in 2015 and 2016. This is due to the fact that the global steel market is currently experiencing a crisis in terms of saturated output and capacity. The steel industry's global capacity utilization level fell in 2015 to X% (in 2014, this figure stood at X%). Combined with a slowing of economic growth in China, demand for steel in the PRC contracted, resulting in a decline in output (-X% in 2015 and -X% in the first six months of 2016). These conditions forced Chinese steel producers to step up export volumes (in 2015 Chinese steel exports increased by X% to X million tonnes). This, in turn, accounts for the current steel surplus in many markets, making the governments of individual countries introduce import duties on rolled steel to ensure that local steel manufacturers are protected.   

China maintains that the anti-dumping duty is counter-productive. The Chinese Ministry of Commerce has made a connection between low prices for Chinese steel with lower costs and increased output levels, than those of their foreign competitors, so the Chinese steel maufacturers' pricing policy, therefore, is not dumping. 

In addition, Russian steel manufacturers do not support the European Commission's decision to introduce anti-dumping duties, and they have brought to light a number of violations of WTO regulations and standards that occurred during the anti-dumping investigation. A representative from Severstal's External Communications Department, for example, noted that the calculations are based on the ruble exchange rate as of the date of a contract's agreement, whereas WTO regulations state the requirement to use the exchange rate as of the sale date for this process. Maria Simonova, External Communications Manager at NLMK Group, said that information submitted by the company during the invesigation was ignored and replaced with information regarding other companies' products. Russian steel producers intend to dispute the European Commission's decision in the European Court, and the WTO's dispute regulation body.

Authors: Sergey Avramenko, Fyodor Yanukovich

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Source: EU: Flat-Rolled Products Of Iron Or Steel (Not Further Worked Than Cold-Rolled) - Market Report. Analysis And Forecast To X

Product coverage: flat-rolled products of iron or non-alloy steel, not further worked than cold-rolled; flat-rolled products of stainless steel or of other alloy steel, not further worked than cold-rolled (except products of silicon-electrical steel or high speed steel).

This report provides an in-depth analysis of the cold-rolled steel market in the EU. Within it, you will discover the latest data on market trends and opportunities by country, consumption, production and price developments, as well as the global trade (imports and exports). The forecast exhibits the market prospects through 2025.

Country coverage: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania , Slovakia, Slovenia, Spain, Sweden, United Kingdom.

Data coverage:
• Market volume and value;
• Per Capita consumption;
• Forecast of the market dynamics in the medium term;
• Production in the EU, split by region and country;
• Trade (exports and imports) in the EU;
• Export and import prices;
• Market trends, drivers and restraints;
• Key market players and their profiles.

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1. How to diversify your business and benefit from new market opportunities
2. How to load your idle production capacity
3. How to boost your sales on overseas markets
4. How to increase your profit margins
5. How to make your supply chain more sustainable
6. How to reduce your production and supply chain costs
7. How to outsource production to other countries
8. How to prepare your business for global expansion

While doing this research, we combine the accumulated expertise of our analysts and the capabilities of artificial intelligence. The AI-based platform, developed by our data scientists, constitutes the key working tool for business analysts, empowering them to discover deep insights and ideas from the marketing data.
1. INTRODUCTION
Making Data-Driven Decisions to Grow Your Business
1.1 REPORT DESCRIPTION
1.2 RESEARCH METHODOLOGY AND AI PLATFORM
1.3 DATA-DRIVEN DECISIONS FOR YOUR BUSINESS
1.4 GLOSSARY AND SPECIFIC TERMS

2. EXECUTIVE SUMMARY
A Quick Overview of Market Performance
2.1 KEY FINDINGS
2.2 MARKET TRENDS

3. MARKET OVERVIEW
Understanding the Current State of The Market and Its Prospects
3.1 MARKET SIZE
3.2 CONSUMPTION BY COUNTRY
3.3 MARKET FORECAST TO 2025

4. MOST PROMISING PRODUCTS
Finding New Products to Diversify Your Business
NOTE: THIS CHAPTER IS AVAILABLE ONLY FOR PROFESSIONAL EDITION
4.1 TOP PRODUCTS TO DIVERSIFY YOUR BUSINESS
4.2 BEST-SELLING PRODUCTS
4.3 MOST CONSUMED PRODUCT
4.4 MOST TRADED PRODUCT
4.5 MOST PROFITABLE PRODUCT FOR EXPORT

5. MOST PROMISING SUPPLYING COUNTRIES
Choosing the Best Countries to Establish Your Sustainable Supply Chain
NOTE: THIS CHAPTER IS AVAILABLE ONLY FOR PROFESSIONAL EDITION
5.1 TOP COUNTRIES TO SOURCE YOUR PRODUCT
5.2 TOP PRODUCING COUNTRIES
5.3 TOP EXPORTING COUNTRIES
5.4 LOW-COST EXPORTING COUNTRIES

6. MOST PROMISING OVERSEAS MARKETS
Choosing the Best Countries to Boost Your Exports
NOTE: THIS CHAPTER IS AVAILABLE ONLY FOR PROFESSIONAL EDITION
6.1 TOP OVERSEAS MARKETS FOR EXPORTING YOUR PRODUCT
6.2 TOP CONSUMING MARKETS
6.3 UNSATURATED MARKETS
6.4 TOP IMPORTING MARKETS
6.5 MOST PROFITABLE MARKETS

7. PRODUCTION
The Latest Trends and Insights into The Industry
7.1 PRODUCTION VOLUME AND VALUE
7.2 PRODUCTION BY COUNTRY

8. IMPORTS
The Largest Importers on The Market and How They Succeed
8.1 IMPORTS FROM 2007–2017
8.2 IMPORTS BY COUNTRY
8.3 IMPORT PRICES BY COUNTRY

9. EXPORTS
The Largest Exporters on The Market and How They Succeed
9.1 EXPORTS FROM 2007–2017
9.2 EXPORTS BY COUNTRY
9.3 EXPORT PRICES BY COUNTRY

10. PROFILES OF MAJOR PRODUCERS
The Largest Producers on The Market and Their Profiles
NOTE: THIS CHAPTER IS AVAILABLE ONLY FOR PROFESSIONAL EDITION

11. COUNTRY PROFILES
The Largest Markets And Their Profiles
NOTE: THIS CHAPTER IS AVAILABLE ONLY FOR PROFESSIONAL EDITION
Austria
Belgium
Bulgaria
Croatia
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Latvia
Lithuania
Luxembourg
Malta
Netherlands
Poland
Portugal
Romania
Slovakia
Slovenia
Spain
Sweden
United Kingdom

LIST OF TABLES
Table 1: Key Findings In 2017
Table 2: Market Volume, In Physical Terms, 2007–2017
Table 3: Market Value, 2007–2017
Table 4: Per Capita Consumption, By Country, 2015-2017
Table 5: Production, In Physical Terms, By Country, 2007–2017
Table 6: Imports, In Physical Terms, By Country, 2007–2017
Table 7: Imports, In Value Terms, By Country, 2007–2017
Table 8: Import Prices, By Country Of Destination, 2007–2017
Table 9: Exports, In Physical Terms, By Country, 2007–2017
Table 10: Exports, In Value Terms, By Country, 2007–2017
Table 11: Export Prices, By Country Of Origin, 2007–2017

LIST OF FIGURES
Figure 1: Market Volume, In Physical Terms, 2007–2017
Figure 2: Market Value, 2007–2017
Figure 3: Consumption, By Country, 2017
Figure 4: Market Forecast To 2025
Figure 5: Products: Market Size And Growth, By Type
Figure 6: Products: Average Per Capita Consumption, By Type
Figure 7: Products: Exports And Growth, By Type
Figure 8: Products: Export Prices And Growth, By Type
Figure 9: Production Volume And Growth
Figure 10: Exports And Growth
Figure 11: Export Prices And Growth
Figure 12: Market Size And Growth
Figure 13: Per Capita Consumption
Figure 14: Imports And Growth
Figure 15: Import Prices
Figure 16: Production, In Physical Terms, 2007–2017
Figure 17: Production, In Value Terms, 2007–2017
Figure 18: Production, By Country, 2017
Figure 19: Production, In Physical Terms, By Country, 2007–2017
Figure 20: Imports, In Physical Terms, 2007–2017
Figure 21: Imports, In Value Terms, 2007–2017
Figure 22: Imports, In Physical Terms, By Country, 2017
Figure 23: Imports, In Physical Terms, By Country, 2007–2017
Figure 24: Imports, In Value Terms, By Country, 2007–2017
Figure 25: Import Prices, By Country, 2007–2017
Figure 26: Exports, In Physical Terms, 2007–2017
Figure 27: Exports, In Value Terms, 2007–2017
Figure 28: Exports, In Physical Terms, By Country, 2017
Figure 29: Exports, In Physical Terms, By Country, 2007–2017
Figure 30: Exports, In Value Terms, By Country, 2007–2017
Figure 31: Export Prices, 2007–2017