Metallurg EUROPE have not sweet
Currently, the EU has a production capacity of about 210 million tons of steel per year. The demand in the region, in normal market conditions vary on the level of 150-160 million tons in the face of falling demand there is a large amount of unclaimed goods, which leads to a decrease in its value and, consequently, to a drop in profits of steelmakers. In particular, the German steel company ThyssenKrupp and Salzgitter expect significant losses as a result of lower sales volumes in the region.
For example, ThyssenKrupp believe that the decline in the operating profit of the company for up to 12 months to September this year will be hundreds of millions of euros. Salzgitter doubt that will keep profitability at least at the level of 2011
Against the background of the negative trends of consumption, as well as to optimize the steel output steel companies have to reduce output. In particular, ArcelorMittal reported a possible production cuts by Polish enterprises in Krakow and the Mining oak wood, which will lead to a reduction of 10% of the staff of the Polish steel company assets. In addition, due to weak demand for steel in Europe before the end of the year the company has no plans to run blast furnaces at ArcelorMittal Florange.
The Swiss company Duferco closes plant in Charleroi, Belgium, which will reduce the 1 million jobs. Covers part of the facilities and Italy#39;s Ilva, a member of the steel group Riva Group, said in a material `Steel EU market: is there life after the crisis? #39;, Published in? 7-8 of` `Metal Supply and Sales.
In general, the European steel industry, suffering from the difficult economic situation in the euro area by the end of the year will show a negative trend of development. The question is, how significant will this fall.
