Imports - Eurofer

28
E U R O F E R 2 0 0 0
Scrap
Underlying demand for steel remained
strong throughout the year 2000 despite the
deterioration in market conditions towards
the end of the year. That deterioration affected
principally flat products. The market for long
products, on the basis of a very strong expansion
in the construction sector and very positive
activity levels in manufacturing industry
remained quite healthy. Steel production levels
were therefore high, particularly electric arc
furnace production. EAF production reached
65 million tonnes, an increase of 10.7%.
Demand for scrap was therefore high throughout
the year. Nevertheless, scrap prices remained
remarkably stable moving only within a small
range. This was due to the relative lack of
supply problems. Scrap was, apart from episodic
problems in some regions and for some
grades, readily available both from domestic
sources and from import. The continued
availability of scrap supplies notably from the
Black Sea region is increasingly important for
the steel industry in Europe.
Vigilance is therefore necessary to counteract
attempts to restrict supplies to international
markets by certain of the countries of that
region. In this respect Russia persists in its
imposition of a tax on scrap exports in direct
violation of the bilateral agreement it has with
the EU. This continues to complicate trade
relations in steel between Europe and Russia.
Scrap (Demolition Quality): Prices EU Market (€/t)
120
100 92
80
60
40
20
0
102
85
1996 1997 1998 1999 2000
Source: EUROFER
Scrap: EU Consumption (million tonnes)
100
80
60
40
20
0
70
Source: Eurostat
78 80 78
85
1996 1997 1998 1999 2000
72
91