22.12.1999 Official Journal of the European Communities L 328/17 COMMISSION REGULATION (EC) No 2727/1999 of 20 December 1999 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 (1), 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: (1) by Commission Regulation (EC) No 2845/98 (%), 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 European Community were subject to a priori Community surveillance; (2)  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 arrange- ments for Community surveillance measures in respect of ECSC products be adopted in accordance with the provisions of those Regulations; (3)  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; (4)  available economic indicators show the following trends: (A) Production. In 1998, production of crude steel in the Community remained with 160 million tonnes at the same level as in 1997. It slowed down between January and September 1999 by approximately 5,8 %. The increase in imports of certain finished steel products in the first semester, the rather slow () O] L 349, 31.12.1994, p. 53. () O] L 314, 412.1996, p. 1. () O] L 67, 10.3.1994, p. 89. (% O] L 159, 3.6.1998, p. 1. () O] L 354, 30.12.1998, p. 55. recovery in individual consuming sectors, the high level of stocks and a further reduction of exports should result in a 1999 crude steel production of about 155 million tonnes. It is expected to increase slightly in 2000, since consumption is expected to increase compared with 1999; (B) Imports. Imports of ECSC products into the Community from all third countries amounted to 18,3 million tonnes in 1998, 50 % above 1997. During the first six months of 1999, imports of ECSC products amounted to 9 million tonnes, a decrease of 12 % compared with the same period in 1998. Imports of flat products decreased by 29 %, long products increased by 20 % and semi-finished products by 8 %; (O) Exports. Exports of ECSC products decreased by 20% to 16,8 million tonnes in 1998 compared with 1997. In the first six months of 1999, exports of ECSC products amounted to 7,2 million tonnes, an average decrease of 16 % compared with the same period in 1998. For 1999 as a whole, the Community is likely to become for the second year in row a net importer of steel products. In 1997, the Community had a net surplus of 8,5 million tonnes and in 1998 it had a net deficit of 1,5 million tonnes; (D) Similar trends apply to certain steel products covered by the EC Treaty: in 1998, production of steel tubes and pipes increased by 1,5 % compared with 1997; imports of steel tubes and pipes increased by an average of 17 % in 1998 compared with 1997; for the first six months of 1999, imports of steel tubes and pipes decreased by an average of 11 % compared with the same period in 1998, but over the same period exports decreased by 32 %; (5)  the Community's external trade statistics are not avail- able within the periods established by Commission Regulation No 840/96 (°) and whereas it is necessary that this problem should be addressed urgently; (6)  the interests of the Community require that imports of certain steel products should be subject to prior Community surveillance in order to provide statistical information permitting rapid analysis of import trends; () O] L 114, 8.5.1996, p. 7.