L 351/28 Official Journal of the European Communities 23.12. 97 COMMISSION REGULATION (EC) No 2604/97 of 16 December 1997 introducing prior Community surveillance of imports of certain iron and steel products covered by the ECSC and EC Treaties originating in certain third countries THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EC) No 3285/94 of 22 December 1994 on common rules for imports and repealing Regulation (EC) No 518/94 (), as last amended by Regulation (EC) No 2315/96(3), and in particular Article 11 thereof, Having regard to Council Regulation (EC) No 519/94 of 7 March 1994 on common rules for imports from certain third countries and repealing Regulations (EEC) No 1765/82, (EEC) No 1766/82 and (EEC) No 3420/83 (%), as last amended by Regulation (EC) No 847/97 (%, and in particular Article 9 (1) thereof, Consultations having taken place within the Committees set up under the Regulations referred to above, Whereas by Commission Regulation (EC) No 2412/96 (), imports into the Community of certain iron and steel products covered by the Treaty establishing the European Coal and Steel Community and the Treaty establishing the European Community were subject to a priori Community surveillance; Whereas in accordance with the provisions of Regulations (EC) No 3285/94 and (EC) No 519/94, products covered by the Treaty establishing the European Coal and Steel Community are subject to the common rules for imports and it is therefore necessary that the arrangements for Community surveillance measures in respect of ECSC products be adopted in accordance with the provisions of those Regulations; Whereas the steel market in the Community has been unstable in recent years, partly due to pressure from imports and notably from regions with excessive produc- tion capacity and weak domestic consumption. The steel market was still unstable in early 1996, but stabilized () OJ L 349, 31. 12. 1994, p. S3. () OJ L 314, 4. 12. 1996, p. 1. () O] L 67, 10. 3. 1994, p. 89. () OF L 122, 14. 5. 1997, p. 1. () OJ L 329, 19. 12. 1996, p. 11. during that year and has recovered since the first months of 1997. This positive trend is expected to continue into 1998, but this depends on market and exchange rate developments. Available economic indicators show the following trends: (a) Production. In 1996, production of crude steel in the Community decreased to 148 million tonnes, S % below 1995. During the first eight months of 1997, Community production increased by 7,6 % compared with the same period of 1996. For 1997 as a whole, production is expected to be above the 1995 level of 156 million tonnes; (b) Imports. Imports of ECSC products into the Commu- nity from all third countries amounted to 13,4 million tonnes in 1996, 65 % of which (8,7 million tonnes) were flat and long products. For 1996 the imports decreased by 25 % for all ECSC products. This drop in imports was preceded by sharp increases of 30 to 35 % in 1995 and 1994. Furthermore, the average 25 % decrease in the level of imports in 1996 reflects decreases of 52 % for semi-finished products and 33 % for long products, whereas imports of flat products decreased by 12 %. Member States are unequally affected by these trends. In some Member States, imports of certain flat or long products have increased by more than 100 % compared with the same period of 1995. During the first six months of 1997, imports of ECSC products amounted to 7,3 million tonnes, an average decrease of 1 % compared with the same period in 1996, which reflects a decrease of 6 % for semi-finished products, a 3 % decrease for flat products and an increase of 22 % for long products. Imports are expected to grow in the remain- ing months of 1997. Forecasts for 1998 are, however, hard to establish with certainty because of the absence of up-to-date trade statistics for all Member States and important changes in trade structures; (c) Exports. Exports of ECSC products increased to 24,5 million tonnes in 1996. The average 24 % increase in the level of exports in 1996 compared with 1995, reflects increases of 70 % for semi-finished products, 19 % for flat products and 13 % for long products. For the first six months of 1997, exports of ECSC products amounted to 10,4 million tonnes, an average decrease