A softening in the price of a key steelmaking ingredient, coal, coupled with rising steel prices will help restore healthy margins in the metals sector, said Mike Shillaker, an analyst at Credit Suisse. “The second, third and fourth quarters of 2017 will be better than this year,” he added.
Globally, another year is envisioned with muted growth in steel production, with production increasing 0.9 percent in 2017. Modest growth was seen in the first 11 months of 2016, according to the World Steel Association.
U.S. steel production will increase 4.4 percent in 2017, after nearly two years of contraction, in line with analysts' average forecasts. Steel prices rose for much of 2016, while protectionism prompted authorities in the US, EU and elsewhere to stem the flow of unfairly traded materials.
In the EU, production is projected to increase by 1.5 percent. Analysts say they expect the sector's financial performance to improve following the difficulties of a slump in steel prices.
An important key influence will be the behavior of China, the largest steel producer, which accounts for nearly half of the world's steel output. Beijing has promised to close unnecessary factories. At the same time, analysts predicted that steel output would decline by 0.3 percent next year.
The steel industry expects muted growth
|
Azovpromstal® 28 December 2016 г. 12:08 |
