http://ec.europa.

eu/trade/creating-opportunities/economic-sectors/industrial-goods/steel/

Steel- EU

The EU is the second largest producer of crude steel

For information on other metal types, see Non-ferrous metals

EU steel exports in 2010: 33.7 million tonnes (32 billion) EU steel imports in 2010: 26.8 million tonnes (18 billion) ) EU share of global steel exports (top ten exporters) in 2010: 14 % Biggest markets for EU steel exports in 2010 (in decreasing order of importance): Turkey, USA, Algeria, Switzerland, Russia, India.

Steel is the most commonly-used material in the world, with an annual production of around 1.4 billion tonnes (2010). Its resiliency, flexibility and reusability make it the single most useful basic industrial material on earth. The increase in global steel production in 2010 after heavy contraction in 2009 was higher than expected with an increase of 15% compared to 2009 and a new record for global crude steel production.. The EU remained the second world steel producer with 173 million tonnes of crude steel produced in 2010, an increase of +24.6% compared to 2009. China was the world's largest producer with 626 million tonnes (45% of world production), followed in third place by Japan with 109 million tonnes, the USA with 81 million tonnes and Russia with 67 million tonnes. The steel sector in the EU accounts for 1.4% of GDP. After rather stable production at around 200 million tonnes per year, the sector has been hit hard by the economic crises since the end of 2008. The crude steel production in the EU fell sharply in 2009 (-30%). The EU steel sector started to recover in mid-2009 as the overall economic conditions gradually improved. The recovery continued during 2010, one of the key drivers being the improvement in international trade. Employment in the steel sector has contracted steadily in recent decades from 1 million people working in the sector in 1970, to around 408 000 employed in the sector in 2008. The number of Europeans working in downstream industries dependent on domestically-produced or imported steel, is in the range of millions. The EU steel imports fell by about 50% from 40.2 million tonnes in 2008 to 20.7 million tonnes in 2009. In comparison, the steel exports from the EU only fell by 11% from 35 million tonnes in

2008 to 31 million tonnes in 2009, thus turning the EU steel trade balance to surplus after several years of deficit. In 2010 this surplus halved when imports grew by 30% to almost 27 million tonnes and exports increased only by 5% to 33.7 million tonnes in total. Russia was the largest exporter to the EU in 2010 with over 6.5 million tonnes, which represented 24% of total EU steel imports. During 2010, imports from China increased again after a significant drop in 2009. China moved to third import source position with 3.6 million tonnes in 2010, after Russia and Ukraine (5.7 million tonnes). Turkey held the fourth place (1.8 million tonnes) followed by South Korea, Switzerland and Serbia that all exported over 1 million tonnes to the EU. Following a 'zero-for zero' agreement negotiated during the Uruguay WTO world trade negotiations, the EU has reduced its import duties for most steel products to 0%. For steel producers who are not members of the WTO the EU operates a system of annual import quotas that govern the overall levels of steel imports from these countries to the EU. For Kazakhstan these quotas amount to 0.2 million tonnes a year. For Russia, they are implemented as part of an EU-Russia agreement and amount to 3.2 million tonnes. These quotas will lapse when these countries join the WTO. http://madb.europa.eu/mkaccdb2/indexPubli.htm http://madb.europa.eu/madb_barriers/barriers_details.htm?barrier_id=960100&version=2
Title Last update/check Sector Measure Third Country Description Steel Local Content Requirements 19/01/2009 Iron, Steel and Non-Ferrous Metals Government Procurement United States of America Steel is subject to the imposition of local content requirements or preferences given in works and other government procurement contracts for bids which include locally produced steel. This practice is notably common at the sub-federal level. Many States (such as Connecticut, Louisiana, Maine, Michigan, Illinois, Maryland, New York, Pennsylvania, Rhode Island and West Virginia) have such requirements that also apply to private contractors and subcontractors. 960100 Ongoing

Barrier id Barrier Status

Itle Last update/check Sector Measure Third Country

Export duties on raw and semi-finished steel products and iron ore 02/05/2011 Iron, Steel and Non-Ferrous Metals Export Taxes India

Description

Through a Customs notification (No. 27/2011) of 1 March 2011, the Indian Government has increased the rate of export duty for all types of iron or at a unified level of 20% ad valorem. The previous rates had been 5% for iron ore fines and 15% for iron ore lumps (Notifications: No. 146/2009 and 56/2010). As part of India's stimulus package, the government eliminated the export duty on iron ore fines in early December 2008 (after having lowered the tax to 8% in November 2008) and reduced the duty on lump ores to 5% from 15%. However, in December 2009, India re-imposed a 5% duty on fines and increased the duty on lumps to 10%. In April 2010, the duty on lumps was raised to 15%. After the measures had taken effect on 1 March 2011, the EU Delegation undertook a demarche on 31 March 2011 with the Ministry of Commerce seeking confirmation of the factual situation and enquiring whether any consideration was being given to adjusting the duties further. 085178 Ongoing

Background

Actions Taken

Barrier id Barrier Status

http://madb.europa.eu/madb_barriers/barriers_details.htm?barrier_id=085178&version=3(for above) http://trade.ec.europa.eu/doclib/docs/2008/september/tradoc_140673.pdf

http://www.issb.co.uk/asia.html (region wise import export)

SB maintains a fully detailed database of the imports and exports of steel and steelmaking raw materials for more than 50 major steelmaking nations, collectively accounting for 97% of global steel output. This high level of coverage also allows an accurate assessment of the trade flows for those countries for which we cannot obtain national trade data. **NEW From ISSB** Steel Products World Trade Reports - updated monthly

Global Crude Steel Production

Despite the global recession 2009 saw global crude steel production fall just 7% to 1230 million tonnes with 15% growth in China largely offsetting an average 21% fall in the rest of the world. Indian and Iranian production were also both up, by 9%, in 2009. Global BOS production was down just 4%, with Chinese growth of 14% countering a 23% fall across the rest of the world while EAF production fell 16% globally, despite growth of 6% in China. All major producing regions showed falls in 2009 with the biggest falls hitting the most highly developed nations. The EU27 was down 30% with NAFTA 34% lower and Japan down 26% on 2008. 2010 saw global output total 1,412 million tonnes, 15% up on 2009 and 5% higher than the previous peak reached in 2007. Having recorded growth in 2009 China saw a below average 9% increase in output in 2010 while the average recovery on 2009 levels for the rest of the world was 20%. This included sharp upturns in some of the countries that had suffered the biggest reductions in 2009. Production in the EU27 was 24% higher, in Japan it was up by 25% while the US saw a 38% rise. Below we summarise World Steel Association crude steel production data.

Global Trade in Steel

Exporters
Combined export shipments of steel mill products (semis, long & flat products, tubes) by the leading steel

exporting nations, reached a peak in Quarter 3 2008 of 84 million tonnes before falling to a low of 52 million tonnes in Quarter 1 2009. The remainder of 2009 saw trade levels stage a partial recovery and Quarter 4 saw total exports of 66 million tonnes. Quarter 1 2010 saw exports fade slightly before a big rise to 75 million tonnes in Quarter 2 which saw Chinese exports at their 2010 peak. While exports faded to average 67 million tonnes in each of Quarters 3 and 4 exports levels across the full year were 16% higher than in 2009 driven by a 24% increase in the movement of flat products.

Importers

The big three steel importers of recent times, EU27, USA and South Korea saw import levels slashed during 2009. EU27 and US imports both halved, with South Korean imports down 29%. China was the world's biggest steel importer in 2009 with imports 43% higher than in 2008. Exports to Vietnam, Iran and India increased, while those to the UAE fell 57%. 2010 saw the EU27, South Korea and USA all substanitally increase imports while China reduced imports significantly.

If you want to know more about steel exports or imports please either contact phil.hunt@issb.co.ukor use our NEW on-line Trade Enquiry System.

Global Trade in Steelmaking Raw Materials

Global Trade in Iron Ore Iron ore exports are dominated by Australia and Brazil, with demand dominated by Chinese imports. Global BOS production fell just 4% in 2009 with growth of 13% in China countering a 23% fall across the rest of the world. Moreover 2009 saw Chinese imports of iron ore increase 41% on 2008 to 628 million tonnes, as the contribution from domestic mines fell. Despite the other major iron ore importers recording reduced imports this surge in Chinese import demand was sufficient to see 2009 total export levels reach record levels, up 9% on 2008. 2010 saw iron ore exports reach new heights with combined shipments by the top 15 exporting nations exceeding 280 million tonnes in Quarter 4 alone and with annual shipments exceeding 1 billion tonnes for the first time. The 2010 total represents a 12% increase on 2009 levels and was reached despite a 1% fall in China's imports.

If you want to know more about iron ore exports or imports please either contactphil.hunt@issb.co.uk or use our NEW on-line Trade Enquiry System.

Global Trade in Scrap For 2010 we estimate total global trade in scrap to have increased by just 1% overall on the 2009 level. This is in part because some of the major scrap exporting nations, such as the USA and Japan, reduced exports in 2010 as domestic demand for scrap recovered. The major reason for the very modest rise in total trade levels was, however, that China's imports of scrap fell by nearly 60% in 2010. Total scrap import activity with China excluded rose 16% in 2010.

EU27
Crude Steel Production ; Trade in Steel Despite the growing industrialisation of the developing world the EU remains both a leading steel producing region and a major global market for steel. ISSBs database includes trade data covering steel and steel-making raw material for all the EU27 member nations at both 6 digit HS tariff code level and the more detailed 8 digit EU tariff code level. In addition to having 100% coverage of EU27 nations ISSB holds national trade data for the following significant Non-EU European countries: Croatia, Serbia, Norway, Switzerland & Turkey. These five countries account for 96% of crude steel produced in Europe outside of the EU and together with our 100% EU coverage ISSB data gives trade coverage for in excess of 99% of the steel produced within Europe as a whole.

Crude Steel Production

EU27 total crude steel production reached a peak in recent years in 2007 of 210 million tonnes. This represented an increase since 2000 of just 8%. 2008 saw production decrease by 6% and 2009 by 30% to leave EU27 production down by 28% on 2000 with the EU27s share of global output having fallen from 23% in 2000 to 11% in 2009. However if one excludes the vast increase in Chinese steel output the EUs share of global production has fallen much more modestly - from 27% in 2000 to 21% in 2009. The 25% increase in EU27 production seen in 2010 left EU output 18% below the recent 2007 peak. Below we summarise World Steel Association crude steel production data for the EU27.

Trade in Steel

EU27 Members Trade with the Rest of the World.

ISSB can assess the EU27s trade in steel in a number of ways. For example we can assess EU27 member states trade with countries outside of the EU. 2000-2005 saw EU27 external trade remain reasonably steady with the EU being a net exporter of steel mill products (semis, long & flat products, tubes). 2006 and 2007 saw EU member imports from outside the EU increase significantly and even though imports across 2008 were down the EU was a significant net importer of steel over 2006-2008. In 2009 EU27 imports fell significantly further than exports with the result that the EU returned again to being a net steel exporter, a position maintained in 2010 despite import levels rising faster than those of exports.

EU27 Members Trade with all Countries

ISSB can of course assess the trade of EU27 members with any combination of countries. Here, as an example, we summarise Germanys trade balances in steel mill products over 2006-2010 covering it's trade with all countries.

EU27 Members Trade with Other EU Members.

ISSB can also assess the flows of steel within the EU and as an example we show below for 2010 the largest origin and destination nations for movements of steel between EU member states.

If you want to know more about the movements of steel and steel making raw materials involving European countries (both EU members and Non-EU members) please contact phil.hunt@issb.co.uk or use our NEW on-line Trade Enquiry System.

UK
Crude Steel Production ; Steel Demand ; Trade in Steel

Crude Steel Production

UK crude steel production fell between 1997 and 2002 before stabilising at around 13-14 million tonnes per year over 2003-2008. As elsewhere recession led to production being cut back sharply in the later half of 2008 with output reaching a low point in December before starting a steady recovery through 2009. Although the export-orientated Teesside plant was mothballed in February 2010, UK total crude steel production in 2010 was down less than 2% on the 2009 level. Excluding Teesside tonnage, to allow a like-for-like comparison, shows that UK production in 2010 was 25% higher than in 2009 but remained 11% below the comparable 2008 level.

Steel Demand
UK demand for steel fell by more than domestic production in 2009 as imports fell more sharply than either exports or domestic deliveries. Quarterly demand reached a low point in the first quarter of 2009, while demand in the first quarter of 2010 had risen by 40% on that low. There was a further increase in demand levels in Quarter 2 before the holiday period affected Quarter 3 saw demand levels drop back slightly. Quarter 4 saw a further slight deterioration with delivery levels in snow affected December noticeably weak after relatively good levels in October and November. UK demand in 2010 was 27% higher than in 2009 with import share returning to similar levels as in 2008.

Trade in Steel
Despite UK import and export levels being relatively high in relation to domestic production and demand levels the UK was a net exporter of steel over 2007-2009. With the export orientated Teesside plant mothballed for the majority of 2010 the UK became a small net importer of steel last year.

Below we show the geographical split of UK steel exports and imports over 2009 and 2010.

If you want to know more about the UK steel market, or UK exports and imports of steel and steelmaking raw materials please contact phil.hunt@issb.co.uk or use our NEW on-line Trade Enquiry System.

CIS
Crude Steel Production ; Trade in Steel Due to a combination of plentiful raw material supplies and political history the CIS region produces far more steel than is needed to meet demand for steel within the region. It is the largest net exporting region in the world and even in 2009 CIS countries exported 49 million tonnes of steel mill products (semis, long & flat products, tubes) to countries outside the region, while importing less than 3 million tonnes. ISSB holds trade data at 6 digit HS tariff level for the dominant steel nations of the CIS region: Russia, the Ukraine, Belarus and Kazakhstan, whom together produce 99% of the regions steel. Additionally with export coverage of 97% steel production globally ISSB is ideally placed to assess the market for steel in those CIS countries for which national trade data is not available.

Crude Steel Production

The CIS is the cheapest region in the world in which to produce steel, predominantly due to the plentitude of steelmaking raw material and energy supplies. Crude steel production reached a recent peak in 2007 with both 2008 and 2009 seeing significant falls. Despite an average 11% increase in production across the region in 2010 ouput remained 13% below the 2007 level. Below we summarise World Steel Association crude steel production data for the CIS region.

Trade in Steel
Russia recorded an export fall in steel mill products of only 3% in 2009, despite the global recession. This made it the worlds third largest steel exporter after Japan and the EU27 (exports to Non-EU markets), and ahead of the Ukraine. 2010 saw Russian exports down a further 1% despite increased semis exports to leave it the worlds fourth largest steel exporter after Japan, China and the EU..

Ukrainian exports of steel mill products fell 16% in 2009 dropping it from third largest steel exporter in 2008 to fourth largest exporter in 2009. Dominant semis exports of fell just 10%, but exports of long products, flat products and tubes fell by 13%, 27% and 24% respectively. While 2010 saw a modest overall 5% increase in export levels those of semis and tubes were marginally lower while exports of long and flat products rose.

While total steel exports by the CIS nations fell only 9% in 2009 there was great regionally variation with export increases of 60% to Asia and of 17% to the Middle East largely offsetting sharp falls to other

regional markets. While 2010 saw only a 1% increase in total CIS exports those to the EU were 30% higher although shipments to Asia and Africa fell sharply.

If you want to know more about the exports and imports of the CIS nations, either of steel or of iron ore and scrap, please contact phil.hunt@issb.co.uk or use our NEW on-line Trade Enquiry System.

Americas
NAFTA : Crude Steel Production ; Trade in Steel South & Central America : Crude Steel Production ; Trade in Steel

NAFTA
ISSB holds export and import data covering steel and steelmaking raw materials to 6 digit HS tariff level for the USA, Canada and Mexico giving us 100% trade coverage for the NAFTA region. With crude steel production within NAFTA insufficient to meet demand for steel within the region NAFTA has long been a large net importer of steel from countries outside of the region. Net imports peaked in 2006 at 39 million tonnes but fell substantially each year to be just 8 million tonnes in 2009. 2010 saw a pick up in net importation to 12 million tonnes.

Crude Steel Production

Although 2001 saw a siginificant drop in NAFTA's crude steel poduction, output to 2007 remained steady until the latter half of 2008 when production began to fall sharply. 2009 saw production in NAFTA of 81 million tonnes, 34% down on 2008 and 39% below the level of 2000. Althougth the falls in Canada and the US in 2009 crude steel output were amongst the sharpest anywhere the following recovery has also been strong and 2010 production was up by 38% and 40% in the US and Canada respectively while Mexican production rose 21% on 2009 levels. 2010 total NAFTA production of 111 million tonnes, while 36% above the low of 2009, remains 10% below 2008 levels and 15% lower than seen in 2007. Below we summarise World Steel Association data for crude steel production within NAFTA.

NAFTA : Trade in Steel by Country

ISSB can assess the trade of NAFTA countries in steel and steelmaking raw materials using any combination of products and any combination of trading partner countries. As an illustration of aggregate trade across all steel mill products (semis, long & flat products, tubes) and with all countries we show below US, Canadian and Mexican total trade annually across 2001-2010 with US trade also shown monthly from 2006 to the most recently available month in 2011.

NAFTA : External Trade

ISSB can also assess NAFTA's trading relationships with the rest of the world and display those relationships grouped by products, by regions or by indivdual countries. As an example we show here the

relative flows of steel between NAFTA and other world regions, while below are details of the most significant origins of NAFTA's steel imports.

NAFTA Internal Trade

ISSB can also assess trade within NAFTA and here as illustrations we show a breakdown of NAFTA internal trade by both major product groups and by the flows between the three NAFTA partners.

If you want to know more about the movements of steel and steel making raw materials involving the USA, Canada and Mexico please contact phil.hunt@issb.co.uk or use our NEW online Trade Enquiry System.

South and Central America

ISSB holds export and import data covering steel and steelmaking raw materials to 6 digit HS tariff level for Argentina, Brazil, Chile, Colombia, Peru and Venezuela whom collectively produce 97% of the crude steel produced within the region. Additionally with export coverage of 97% of steel production globally ISSB is ideally placed to assess the market for steel in those South American countries for which national trade data is not available.

Crude Steel Production

Not unsuprisingly given its size and iron ore resources Brazil dominates the steel map of the region. However given it's BRIC status it is perhaps suprising that crude steel production in Brazil only increased by 21% between 2000 and 2008 before 2009 saw output back below the level of 2000. 2010 saw Brazilian output increase by 24% to levels similar to those seen in 2007 and 2008 while 2010 saw prodution across the region as a whole up by a more modest 16%. Below we summarise World Steel Association data for crude steel production within South and Central America.

Trade in Steel
While ISSB holds national trade data from Argentina, Brazil, Chile, Colombia, Peru and Venezuela our global level of trade coverage enables us to assess the trade of other countries within the region for which national trade data is not readily available. As an illustration of this capability we show below the top ten origins and destinations within the region for cross border movements of steel.

If you want to know more about the movements of steel and steel making raw materials involving the countries in the Central and South American region please contact phil.hunt@issb.co.uk or use ourNEW on-line Trade Enquiry System.

MENA : Middle East & North Africa

Steel production in the countries of the Middle East and North Africa remains far below the level of demand for steel in the region making it one of the great export markets for the worlds steelmakers. ISSB maintains a fully detailed database of the exports, and imports, of steel and steelmaking raw materials for more than 50 major steelmaking nations, collectively accounting for 97% of global steel output. With the national trade data of the countries within the MENA region not readily available ISSBs coverage of the worlds dominant exporters places us in a leading position to assess the markets of the Middle East and North Africa. Below we summarise the some of the latest data available regarding the region. If you want to know more about steel exports to, or imports from, the countries of the MENA region please either contact phil.hunt@issb.co.uk or use our on-line Trade Enquiry System.

Crude Steel Production

World Steel Association data shows that Global Crude Steel Production fell by 7% in 2009, or by 21% with Chinese growth excluded. Production in the Middle East increased by 6% in 2009, driven by a 9% increase in Iranian output while production in North Africa fell 12% leading to production across the region as a whole remaining unchanged. 2010 saw output in the Middle East increase by 11% while that in North Africa rose by 18%.

Trade in Steel
Combined exports of Steel Mill Products (semis, long & flat products, tubes) to the MENA region reached a record 48 million tonnes in 2008. While exports to the countries of the Middle East fell 22% in 2009

those to North African countries rose by 35% leading to only a 9% fall in the total shipped to the region as a whole. 2010 saw exports to the MIddle East rise just 7% on 2009 levels while exports to North Africa fell back 30% meaning that total exports to the region decreased a further 6%. Within the 6% fall in exports those of long products (construction orientated) fell by 23%.

If you want to know more about the markets for steel exports in the MENA region please contactphil.hunt@issb.co.uk or use our on-line Trade Enquiry System.

Asia
Crude Steel Production ; Trade in Steel The drive to industrialisation in Asia has made it the region with the worlds highest steel production and highest steel demand. ISSB holds trade data at 6 digit HS tariff level for the dominant Asian steel nations: China, Japan, India, South Korea, Taiwan, Malaysia, Thailand, Indonesia and Singapore, whom together produce 99.5% of the regions steel. Additionally with export coverage of 97% of steel production globally ISSB is ideally placed to assess the market for steel in those Asian countries for which national trade data is not readily available, such as Vietnam, the Philippines and Pakistan.

Crude Steel Production

The development of Chinese steel production dominates both Asian and Global steel output. China accounted for just 39% of Asias crude steel production in 2000 which has now risen to 70% as Chinese production increased nearly five-fold between 2000 and 2010. Indian production has also grown fast, from 27 million tonnes in 2000 to 67 million tonnes in 2010, while the average increase across Asia excluding China and India was just 15%. In 2000 Asia as a whole accounted for 39% of global crude steel production with China accounting for 15%. In 2010 China accounted for 44% of the global total on its own with Asia as a whole accounting for 64%, both fractionally down on the levels seen in 2009. Below we summarise World Steel Association crude steel production data for Asia.

Trade in Steel
Asia contains some of the worlds largest steel exporting and importing nations. Chinese steel exports have dominated headlines in recent years, not just because of the total tonnages being exported, but also due to their volatility. With Chinese production levels so high even small changes in the proportion going to the domestic market can create export surges with serious implications for markets elsewhere. Chinese exports fell 61% in 2009 while imports rose 43% leaving China a small net importer of steel for the year compared with a net exporter of 48 million tonnes in 2007 and 41 million tonnes in 2008. The first half of 2010 saw Chinese exports up sharply but they peaked in June and fell sharply thereafter with a variety of export tax rebates having been cancelled in July, and China recorded net exports of 22 million tonnes for the full year.

Compared to China, Japanese steel exports tend to be much steadier over time. With exports in 2009 down just 11% Japan became, once again, the world largest steel exporter which is a position it retained in 2010.

In 2009 South Korea was the worlds 3rd largest steel importer and 6th largest steel exporter. With the global recession South Korean imports fell by more than exports with the result that it temporarily became a net importer of steel. 2010 saw both imports and exports increase by 22% leaving South Korea as the worlds 2nd largest steel importer 6th largest exporter.

In addition to China, Japan and South Korea ISSB holds national trade data from the other major steel producing nations in Asia : India, Taiwan, Malaysia, Thailand, Indonesia and Singapore.

Given our coverage which includes exports by countries producing 99.5% the steel in Asia and of 97% of steel produced globally ISSB are excellently placed to assess the markets for steel in countries, such as Vietnam, where national trade statistics are not readily available.

If you want top know more about the exports and imports of steel and steel-making raw materials by countries in Asia please contact phil.hunt@issb.co.uk or use our NEW on-line Trade Enquiry System.