Eu Steel Production Set To Be Cut Back To Avoid Oversupply

摘要

This year is likely to turn out to be one of the most unusual periods in the history of the EU steel industry. It started with a cautious approach to production in the first quarter. This transformed into six months of mill activity which equalled the frenzy of 2000. We can now expect a spell of output controls into the New Year. The bubble has burst. Customers built up inventories in recent months by over-ordering to counter the projected higher prices for most product categories. During that time, real demand was declining as activity in the building and manufacturing segments slipped. It is now pay back time. We believe that many steelmakers are anticipating a substantial fall in order intake as consumers deplete their stock levels in the final quarter.