Metals Report Q1 2011 gloomy outlook Spanish steel industry

Metals Report Q1 2011 gloomy outlook Spanish steel industry : Following a dismal 2010, the Spanish steel industry goes into 2011 with a gloomy outlook. The domestic market is set to remain in the doldrums and export markets will perform little better, according to this latest Spain Metals Report from BMI. In 2010, Spanish crude steel production grew 13.7 percent year-on-year (y-o-y) to 15.26mn tonnes.

However, in line with global and European trends, monthly output peaked in May, rising to 1.65mn tonnes, the highest level since September 2008, when the global economic crisis struck. By July, as the sovereign debt crisis began to play out, output was down to under 1.0mn tonnes, similar to the low levels seen in 2009, and around two-thirds of total capacity. Output in H210 failed to match H209 and the industry contracted once again, with little hope of a rapid rebound in 2011.

The key elements vital for private consumption to grow including higher incomes, lower taxes, greater wealth and available consumer credit will all be lacking in Spain over the medium term, and this will thrust Spanish metals industries into increased export dependency. The country remains burdened with low levels of consumer confidence, contraction of credit and rising inflation, all of which are combining to dampen domestic demand. For the latest updates PRESS CTR + D or visit Stock Market news Today

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