Czech Republic Metals Report 2015
BMI View: Czech steel producers continue to face a number of headwinds which stand to limit growth inoutput over the next few years. However, the industry continues to retain a competitive edge through itsproximity to Germany as well as the development of new product lines by its leading producers.
The Czech Republic is one of the larger industrial metals producers in Central and Eastern Europe (CEE),producing 5.36mn tonnes (mnt) of crude steel in 2014, or about 3% of total EU output. Traditionally, thecountry's steel mills have been an important supplier of crude and finished steel products to Germany, whilelocal producers have also thrived off the back of the Czech Republic's sizeable automobile manufacturingindustry. However, like that of many EU states, the country's metals sector has faced a series of challengesin recent years, ranging from stagnant economic growth across much of the region to, more recently,increased competition from low-cost producers from other regions such as Eastern Asia. As EU demand hasfaltered, slowing German industrial output has presented a major challenge to Czech producers with thecountry traditionally consuming about 30% of Czech exports. The result has been a sharp contraction in thecountry's steel output in recent years as mills have cut capacity in order to meet a weakened demandlandscape.
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