WRITTEN QUESTION P-0949/04 by Raffaele Costa (PPE-DE) to the Commission. Difficulties for the Italian steel industry.
Date: 2004-03-22
Institutions: European Parliament, Provisional data
Subjects: China, Italy, export restriction, iron and steel industry, metal waste, price increase, raw material, supply, waste management, world market price

C 84 E/698

Official Journal of the European Union

EN

3.4.2004

Answer given by Mr Kinnock on behalf of the Commission

(19 April 2004)

the total number of permanent and temporary staff employed by the
As at 31 December 2003,
Commission was 21 166. The breakdown of officials per category, as defined in the Staff Regulations, and
by nationality of origin was as follows:

Country

Belgium

Denmark

Germany

Greece

Spain

France

Ireland

Italy

Luxembourg

Netherlands

Austria

Portugal

Finland

Sweden

United Kingdom

Others

A

946

203

1 006

439

817

1 225

226

1 005

44

362

219

289

215

261

773

15

LA

178

117

195

125

171

110

20

167

8

64

15

125

112

96

173

48

B

1 322

C

2 315

87

337

136

389

469

117

567

69

184

97

128

144

116

248

4

136

442

214

365

627

197

827

172

137

89

201

120

120

288

9

D

256

8

10

30

46

55

7

208

36

8

10

28

7

5

9

1

Total

8 045

1 724

4 414

6 259

724

Total

5 017

551

1 990

944

1 788

2 486

567

2 774

329

755

430

771

598

598

1 491

77

21 166

(2004/C 84 E/0785)

WRITTEN QUESTION P-0949/04

by Raffaele Costa (PPE-DE) to the Commission

(22 March 2004)

Subject: Difficulties for the Italian steel industry

A increasing number of Italian operators in the steel industry have complained of an adverse trend in
production. This alarming situation has many causes: firstly raw materials (hematite cast iron, nodular cast
iron, iron and steel scrap, coke, etc.) are increasingly expensive, in particular following the restrictions on
exports introduced by the Chinese Government and the massive consumption of these materials by China
and other Asian countries (one third of the world’s steel production is absorbed by China). Many
employees also complain of problems caused by the fact that Italian legislation classifies scrap metal as
waste. These and other factors have led to exponential increases in the cost of raw materials for foundries
over the last twelve months, as much as between 45 and 70 % for scrap metal and 60 and 100 % for ferro-
alloys (molybdenum, nickel and vanadium). The situation seems unsustainable and may result in serious
crises in manufacturing and employment even in the short term.

Can the Commission say what urgent measures will be taken to tackle these problems and whether it does
not intend to try to persuade the Beijing government to agree to trade arrangements that are less
unfavourable for Community firms in the sector?

3.4.2004

EN

Official Journal of the European Union

C 84 E/699

Answer given by Mr Liikanen on behalf of the Commission

(15 April 2004)

The Commission is closely monitoring developments on the world market for raw materials, particularly
the impact of increasing demand from Asia on the market and on the prices of these products in EU
countries. The steel industry is one of the industrial sectors most affected at the moment because of the
simultaneous increase in the prices of all the raw materials it needs, in particular scrap, coke and ferro-
alloys.

The Commission shares the Honourable Member’s view that some of the difficulties the Italian steel
industry is currently facing could be linked to the spectacular industrial development in China and its
increasing demand for raw materials, which has led to tensions on the market and a sharp increase in
world prices.

For this reason the Commission has contacted the Chinese authorities in order to examine possible
solutions to problems directly linked to trade measures adopted by the Chinese Government, in particular
export licences for coke. China is the main world exporter of this raw material, but because of increasing
demand from the domestic market it has recently tried to limit its exports by adopting restrictive trade
measures. The Commission has approached the Chinese authorities concerning the compatibility of such
measures with the World Trade Organisation (WTO) rules.

The problem of scrap is different. The EU is a major producer and exporter of scrap and is not
experiencing any difficulties with supply. However, in the present situation of rapidly increasing world
prices, speculative behaviour may appear at all levels of the collection and distribution chain of this raw
material and is likely to magnify any minor market imbalances. Italy has a structural deficit in scrap, so as
the market situation changes it suffers more immediatley and directly than most of its EU partners.

The classification of scrap as waste derives from Community legislation aimed at regulating recycling in
accordance with environmental principles. It is the responsibility of the national and local authorities to
implement
this legislation in accordance with the provisions in the framework Directive on waste
management (1).

The Commission would assure the Honourable Member of its continuing commitment to closely monitor
developments on the raw materials market, using all the means available to it to make sure that world
trade in these products develops in accordance with the rules on open and fair competition.

(1) Council Directive 75/442/EEC of 15 July 1975 on waste, OJ L 194 of 25.7.1975.

(2004/C 84 E/0786)

WRITTEN QUESTION P-0957/04

by Ilda Figueiredo (GUE/NGL) to the Commission

(23 March 2004)

Subject: The stated intention of deactivating Sorefame-Bombardier

Following my question of 28 November 2003 (E-3672/03 (1)), my worst expectations appear to have been
fulfilled, with the announcement from Bombardier that it intends to shut down completely or drastically
reduce some of its plants in Europe, and specifically Sorefame-Bombardier, in Amadora, Portugal.

As I stated before,
this is a high-quality, high-capacity and high-tech company manufacturing and
assembling rolling stock, and currently employs some 550 workers, and provides employment for a
further thousand workers in subcontracted companies.