Steel production in the European Union will not be restored in 2013 - Fitch

The FITCH International rating agency has announced a negative forecast for the Steel industry of the European Union, saying that today there was no hope for the restoration of the steel market in Western Europe in 2013. According to Fitch estimates, steel production in the European Union will continue to fall the whole next year. The drop in demand for steel products in the euro zone will cause a drop in production by more than 3%, exerting pressure on the ability of manufacturers of metal rolling to generate free cash. Nevertheless, profit can be obtained as a result of the expected fall in the cost of metallurgical raw materials.


Vesta offers metal rolling and Ukrainian and Russian -made pipes from the warehouse and on order in Moscow. The full assortment of the proposed products can be found on the corporate website of the company http://mvesta.ru .



The only hope of the Western European metallurgical industry was and remains the automotive industry, while mechanical engineering and construction have long become the weakest segment of the market. Foggy prospects regarding the demand for metal, give the foundation to Fitch analysts that there is no additional needs in the metal distribution in the European Union market and will not be in the farthest perspective. As for the prices for metallurgical raw materials, in 2013, Fitch predicts some decrease in supplier pricens and the effects on common profitability in the industry favorable for steel and rental manufacturers.