July 10, 2008
European steel producers seem determined to squeeze the European lemon, announcing additional massive price increases that further threaten the competitiveness of the European steel processing industry and the whole supply chain including metal transformation, machine building, shipbuilding and manufacturing of marine equipment, car suppliers and household producers, inevitably leading to higher prices.
With decisions by the European Commission on current anti-dumping proceedings still pending, Chinese and other independently traded exports into Europe have practically stopped, leaving the European steel producers to write their own blank cheques. Even with on-going contracts, price hikes have led European steel producers to put pressure on European consumer industries to pay extra. “The effect of these price increases, at a time of shortage of EU-sourced steel, will cascade through the supply chain, reducing Europe’s competitive edge and leaving European industry and therefore consumers to foot the bill. This is an unacceptable strategy from the European steel producers who are using anti-dumping proceedings to achieve short term gains at the expense of the rest of manufacturers and of consumers in Europe”.EngineerComms