Italian steel at a crossroads

9/30/2014 - Report
ic_blogtagItalyMetalIndustrial ProductionSector RiskSmall and Medium Enterprises (SMEs)
World steel production increased by +2.3% in the first seven months of 2014 (to 960mn tons) causing more overcapacity, especially in China and Europe. As a result, the price of iron ore is declining, a trend which is expected to continue.

In Italy, production increased in the first seven months of the year reaching 15 million tons but it remains 24% below pre-crisis levels. The national value chain has somehow held up (and payment terms have improved, slightly) thanks to high added-value products, technologically advanced facilities, and exports.

Yet, the steel crisis continues and stifles both SME's and the giant ILVA. In the next two years, developing new target markets for Italian products, mergers and acquisitions in the steel sector, and a lull in production for special steel are to be expected.

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Italian steel at a crossroads - Report