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United Kingdom Metals Report Q1 2015

49 Pages BMI Research December 03, 2014 SKU: BMI5397828

United Kingdom Metals Report Q1 2015

BMI View: After a strong year for the UK steel industry in both production and consumption in 2013, weare forecasting the recovery to remain on track, albeit at a slower pace going forward. In line with itsEuropean counterparts, the UK metals industry has been rocked by low profitability that has led to capacityreductions and disinvestment. However, the worst is probably over for the UK, as slightly stronger domesticdemand and recent investment from international firms such as Sahaviriya Steel Industries and Tata Steelshould arrest the decline in sector fortunes and ensure that the sector continues to accelerate through to theend of our forecast period in 2018.

Serving as a constant reminder that the recovery may be built upon fragile ground, however, monthly datafor activity in the steel sector in the UK has been volatile during the first eight months of 2014. Indeed, aftera strong start with 30.8% year-on-year growth in January, a 9.3% drop off in activity in April, and asluggish recover since means that that month-on-month activity at the end of August (latest available data)sits not much higher than where it stood eight months previously. Only a 11.7% improvement in productionin August helped push overall ourput in the year-to-date back into positive territory.

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United Kingdom Metals Report Q1 2015

BMI Research
December 03, 2014

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