Continued competition from cheaper Chinese and Russian imports will maintain a poor outlook for the European steel industry over the next 12-18 months, Moody's Investors Service said in a published report.
“Global and regional imbalances between supply and demand will continue to weigh on sector and steel prices in 2017, with the risk of increased pressure on profitability. The steel sector in Europe continues to suffer from overcapacity and low margins for SMEs, ”says Hubert Allemani, Moody's vice president and author of the report.
While the purchasing managers' index (PMI) and capacity utilization in the metals sector - two key outlook drivers - remain in a stable range and indicate economic expansion, price pressures and continued high levels of cheap imports are holding back European producers.
Overall, Moody's conservatively believes that steel demand in Europe will grow by 1%. Demand from the three main European steel purchasing industries - automotive, construction and capital goods - will continue to grow in 2017, albeit at a slower pace than in the automotive sector.
Moody's: Chinese and Russian steel imports negatively affect European metallurgists
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Azovpromstal® 27 October 2016 г. 10:31 |
