European steelmakers are enjoying the strongest market conditions in eight years amid Chinese reform and increased EU trade protection measures that once again improve the supply-demand balance, delivering robust profits that can last for the foreseeable future.
Ratings agency Moody's believes that steel demand in China and prices have improved, and steel capacity has been phased out since early 2017.
This has ensured a balance at the global level, and further containment of installed excess steel capacity, according to the agency, will support steel prices in China and other countries.
More importantly, it could “reduce the threat of cheaper Chinese imports, which are increasingly heading to Europe,” to help maintain profits for European steelmakers, Moody's said.
Europe has increased profitability in the steel sector
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Azovpromstal® 29 October 2017 г. 11:39 |
