EU steel deficit will persist throughout 2021

EU steel market participants say import volumes are already at “historic lows” and that expanding safeguards is pointless as European steel mills are unable to meet demand.

“Imports of any kind of steel have never been so low. Over the past two years, imports have steadily decreased, ”he said. one merchant.
European wire rod imports have been declining since 2018 despite a structural product shortage in the trading block, the sources said.

However, the main suppliers, in particular Ukraine, were According to them, the quota for the production of wire rod is used very slowly.
By February 26, Ukraine delivered to the EU only 27,432 tons of wire rod. This is 13.59% of the 201,755 tonnes quota for the first quarter.

There are two main exporters of long products in Ukraine - ArcelorMittal Kryvyi Rih (AMKR) and Metinvest.
According to market sources, Metinvest sells wire rod to Europe in very limited quantities, preferring instead countries such as Israel, Latin America and West Africa.
And most of Metinvest's products are sold to Poland. The plant practically does not export rebar, as it prefers to sell its products on the domestic market.

At the same time, sales of AMKR long products to Europe are limited because, according to sources, the company "does not want to compete with its own factories in Europe."
By February 26, Russia consumed 67,502 tons (81.08%) out of 83,253 tons of wire rod in the first quarter.

Turkey, one of the three largest suppliers of wire rod to the EU, had shipped 38,342 tons by that time. This is equivalent to 36.54% of the 104,925 tons allocated for the first quarter.
Sources said the limited availability of wire rod was a key factor that recently helped push prices up to all-time highs.

The price of steel wire rod (mesh quality) supplied to Northern Europe averaged € 673.75 per tonne in February, slightly higher than in January at € 671.88 per tonne and the highest level since September 2008