Thursday, 17 November 2011
Europe’s current economic woes are weighing heavily on the steel industry. Tata Steel is closing a facility in Wales, while ArcelorMittal has idled and closed a number of European mills and furnaces. ArcelorMittal’s chief financial officer says that it is aiming for a global production capacity of around 71% in Q4, and that they are seeing “more drops in shipments in Europe than in North America.” The impact of lower steel output in Europe is already being felt in the seaborne market. Brazil exported 4.7 MT of iron ore to Europe last month, a 12.2% year-on-year decline. In the years before the 2008 recession, around 30% of Brazil’s iron ore exports went to Europe. After plummeting in 2009, demand recovered enough last year to bring Europe’s share back up to around 20%. Based on the current slowdown in European import demand, however, it is possible that both the volume and share of Europe’s iron ore imports from Brazil will be lower than in 2010.
Source: ICAP Shipping
Europe’s current economic woes are weighing heavily on the steel industry. Tata Steel is closing a facility in Wales, while ArcelorMittal has idled and closed a number of European mills and furnaces. ArcelorMittal’s chief financial officer says that it is aiming for a global production capacity of around 71% in Q4, and that they are seeing “more drops in shipments in Europe than in North America.” The impact of lower steel output in Europe is already being felt in the seaborne market. Brazil exported 4.7 MT of iron ore to Europe last month, a 12.2% year-on-year decline. In the years before the 2008 recession, around 30% of Brazil’s iron ore exports went to Europe. After plummeting in 2009, demand recovered enough last year to bring Europe’s share back up to around 20%. Based on the current slowdown in European import demand, however, it is possible that both the volume and share of Europe’s iron ore imports from Brazil will be lower than in 2010.
Source: ICAP Shipping
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