August 2012 | Steel Tracker
Southern European mills may have found a bottom: International Flat Product Market Analysis
An estimated 11% of southern Europe’s steel production is to be removed from the market.
As MBR has previously noted, the steel industry within the euro-zone has long suffered an imbalance in its supply and demand fundamentals. However, in light of recent events with regards to the part-closure of Italy’s largest steelmaking operation, Ilva, as an estimated 11% of Southern Europe’s steel production is to be removed from the market. This may be looked upon as a bullish sign for the market as supply levels are drawn down. Buyers may well wish to return ahead of any panic purchasing.
Italy’s crude steel production levels have been deteriorating on a year-on-year basis since September 2011 as market conditions continue to weaken. However, we believe that given the current market sentiment, prices have performed well, declining only €34/tonne since the ytd high in March of €545/tonne ($672). We believe the market has become bullish on the outlook...
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