30.12.98 Official Journal of the European Communities L 354/55 COMMISSION REGULATION (EC) No 2845/98 of 22 December 1998 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 (%), 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 1138/98 (*), 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 2604/97 (%), as amended by Regulation (EC) No 706/98 (¢), 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 Euro- pean 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 in view of the elimination on 31 December 1998 of Turkey’s import tariffs towards the Community in respect of all ECSC products, earlier than foreseen in the bilateral agreement on trade in products covered by the Treaty establishing the European Coal and Steel Community, it is appropriate to remove from the scope of 349, 31. 12. 1994, p. 53. 314, 4. 12. 1996, p. 1. 67, 10. 3. 1994, p. 89. 159, 3. 6. 1998, p. 1. 351, 23. 12. 1997, p. 28. 98, 31. 3. 1998, p. 8. 000000 [t | il ol ol onll anll ol the present Regulation all products subject to the ECSC Treaty which originate in Turkey; 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. Since the beginning of 1998, the steel market has been seriously disturbed by the consequences of the financial and economic crisis that began in south-east Asia. Available economic indicators show the following trends: (a) Production. In 1997, production of crude steel in the Community increased to 160 million tonnes, 8,8 % above 1996. It continued to grow between January and July 1998. Since August, production has slowed down. The significant increase in imports of finished steel products in the first semester, the slowdown of activity in individual consuming sectors, the high level of stocks and a further reduction of exports should result in a 1998 crude steel production of about 160 million tonnes. It could decrease slightly in 1999, since consumption is expected to decrease by 4 % compared with 1998; (b) Imports. Imports of ECSC products into the Community from all third countries amounted to 12,2 million tonnes in 1997, 15 % above 1996. During the tirst six months of 1998, imports of ECSC products amounted to 10 million tonnes, an increase of 57,2 % compared with the same period in 1997. Imports of flat products increased by 70 %, long products by 49 % and semi-finished products by 117 %. Imports of finished products from the Asian region increased from 0,2 million tonnes in the first half of 1997 to 1,6 million tonnes in the same period of 1998. Imports also rose from countries indirectly affected by the Asian crisis. Prices for certain steel products within the Community fell by up to 30 % during 1998 as a consequence of low-priced imports. Imports are expected to stay at high levels in 1999; (c) Exports. Exports of ECSC products decreased by 15 % to 21 million tonnes in 1997 compared with 1996. In the first six months of 1998, exports of ECSC prod- ucts amounted to 8,6 million tonnes, an average