Trade with Greece
53
automobile, engine and shaft production. At the
same time, demand is expected to remain stable
in the markets of Cyprus, Middle East and North
Africa. According to industry sources, the positive
messages sent out by overseas markets lead to
investment planning with a focus on improving
the product mix, in regard to both conventional
products, such as reinforcement bars, and special
types of steel (specific diameters and alloys).
However, Greek steel industries had increased
export-oriented output from as early as 2010. For
example, the SIDENOR group directed more than
80% of its sales to exports; however, this is not
news for the Viohalko Group, the largest exporter
with an international turnover that accounted for
10% of total Greek exports in 2009.
Moreover, the recovery of global markets also
provides steel mills with a buffer against the col-
lapse of domestic demand, mainly in construc-
tion.
That said, the international market remains
volatile and its course depends on many factors.
For example, major consumers such as China,
India, Brazil and the US are influencing the mar-
ket, raising scrap prices. Thus, the domestic mar-
ket is obliged to follow international trends, since
raw materials are imported. Another factor of
major importance during this period is the avail-
ability of coke, a fuel used in steel production. The
floods that hit Australia, one of the largest coke
producers worldwide, are causing shortages that
lead to decreased supply, mainly from India, thus
squeezing prices.
Industrial Production
At a first glance, the most recent data of the
Hellenic Statistical Authority (ELSTAT) concern-
ing industrial production seem to be negative, as
the relevant index decreased by 7.6%.
Nonetheless, another picture emerges if these
figures are more thoroughly analyzed and atten-
tion is focused on raw materials and heavy indus-
tries. These industries were the first to feel the
impact of the crisis as early as the second half of
Whereas European countries support their industry mainly in
regard to energy costs, Greek industry has to face successive
electricity cost increases.
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