Friday, June 17, 2005

Continuing Gloom for Steel Producers

MEPS report a that steel oversupply continues to drive prices down

Steel prices for both flat and long products are in decline across the whole ofEurope. The downward movement is proving to be stronger than most observers –and steel producers – anticipated even a few months ago.Many mills haveannounced cutbacks in production in an attempt to bring supply into line withdemand. They have also taken steel off the EU market by stepping up their exportshipments. To the extent that the announced production cuts have in fact beenimplemented, these measures have failed adequately to deal with the problem. The market has continued to be over-supplied.

Read the whole article here



And Corus are cutting production

Corus warned of tough times ahead for Europe's steel makers as the Anglo-Dutch firm moved to accelerate production cuts in the face of weak Western demand, higher imports and mounting stockpiles. Corus on Thursday reiterated its operating performance in the first half of the year was expected to be slightly better than a strong second half in 2004, but added that trading conditions were likely to be tougher in the final six months of the year.

Source Reuters

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