Credit insurance company Atradius expresses concern over German steel

Atradius, the world's second largest credit insurer, has noted the weakening of the German steel industry this year and sees ongoing challenges with the overall industrial transformation.

German branch Atradius notes that the results and forecasts of factories and consumers have become more vague after relatively good results over the previous two years. The previous period was supported by a catch-up effect after the break caused by Covid-19. While this observation is nothing new, Atradius adds the credit insurance company's point of view. It says that non-payments of borrowers in the first half of the year increased markedly both in number and volume.
Our underwriters report that companies continue to delay payment deadlines in their purchasing activities,” comments from Atradius Regional Director Frank Liebold. “Companies are obviously concerned about their liquidity and are trying to get more leeway,” he adds.

Due to the transition from internal combustion to electric motors, many car suppliers are facing challenges that they cannot compensate for with other sales. “Small and medium-sized steel and metals consumers in particular are concerned about low demand as they often cater to specific customer groups and cannot easily switch to other sectors,” Liebold says.