2013-10-11 14:36:10 - Recently published research from Business Monitor International, "Netherlands Metals Report Q4 2013", is now available at Fast Market Research
Long-Term Growth In Output
The Netherlands' metals sector is set for sound growth over the coming years as prices for high quality steel remain elevated and encourage production. Steel will continue to dominate the country's metals industry; however, we do not expect any significant new investment over the coming years. Tata Steel, the largest producer in the country is facing up to an increasingly hostile and competitive operating environment with cheap steel and aluminium being exported from China. However, opportunities remain in high-quality steel, which the Netherlands is a key producer.
In 2012, Dutch steel output experienced a strong decline as the year began with much uncertainty still surrounding the eurozone and the sluggish US economic recovery; however, efforts by eurozone leaders
to rectify the European debt crisis as the year progressed were taken as reassurance by businesses and investors in 2012, and so steel production in the Netherlands picked up to close the year with show a fullyear a growth rate of -1.0% year-on-year (y-o-y), reaching 6.87mn tonnes (mnt). This follows two years of growth that saw output up 4.0% and 28.5% in 2011 and 2010, respectively. While this figure will have been disappointing after two consecutive years of positive growth, it could have been a lot worse had it not been for the rally in output in the second half of the year.
Full Report Details at
- www.fastmr.com/prod/689060_netherlands_metals_report_q4_2013.asp ..
Tata Steel Europe is aiming to reduce costs by 20% in FY2012/13, while at the same time increasing investment. It is spending EUR800mn in increasing liquid steel-making capacity at Ijmuiden by 500,000 tonnes per annum (tpa) to 7.7mn tonnes per annum (mntpa) by 2015-16 while reducing jobs by 1,000. This should significantly improve the competitiveness of its Ijmuiden complex. As such, BMI retains an optimistic outlook for the long-term future of the Dutch steel industry with a swift return to pre-2008 levels by 2014. Tata Steel is investing EUR12mn in enhancing production of specialised corrosion resistant steel with a new finishing line for hot dipped galvanised steel. As a result, the Ijmuiden complex will buck the trend of capacity closures seen elsewhere in Europe and will add value to production, reduce costs and increase volume of cold rolled products. The developments at Ijmuiden justify an optimistic outlook for the long-term future of the industry with a swift return to pre-2008 levels of output by 2014.
On an intercontinental level, the European Commission unveiled in June an action plan revive Europe's steel industry, hurt by tumbling demand and plant closures. The EU steel action plan aims to cut red tape, boost apprenticeship schemes and innovation, create a level international playing field and study ways to lessen the burden of energy costs, which account for about 40% of steelmakers' operating expenses. It says existing EU funds should be used to ease the social cost of restructuring, which has caused the loss of 40,000 jobs in recent years, including the planned closure of most facilities at ArcelorMittal in Liege, Belgium. The Action Plan is a good starting point, but there still is a lot of work to be done until our sector will substantially benefit from the proposals' said Gordon Moffat, director general of European steelmakers association Eurofer. Over time, this could prove to be a boost for the Netherlands' steel industry.
Report Table of Contents:
BMI Industry View
- BMI Industry View
- Steel: Growth To Head Higher
- Table: The Netherlands - Steel Industry ('000 tonnes, unless stated otherwise)
- Table: Netherlands - Steel Industry Historical Data ('000 tonnes, unless stated)
- Regulatory Development
- Table: The Netherlands - Political Overview
- Steel Price Forecast
- Table: BMI Steel Forecast
- Table: Steel Forecast
- Monthly Metals Update
- Aluminium: No Turnaround Yet
- Copper: Declines Back On Track
- Nickel: More Room To Fall
- Zinc: Weakness To Persist In H213
- Table: Select Commodities - Performance And BMI Forecasts
- Table: BMI Commodities Strategy
- Competitive Landscape
- Table: Largest Listed European Metals Producers
- Tata Steel Limited - Q4 2013
- Table: Tata Steel - Key Financial Data
- Cross Checks
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