Spain Metals Report 2015
BMI View: After the economic hardship of the past few years, the outlook for Spain's metals sector isincreasingly positive as the country's manufacturing and construction industries begin a tentative recovery.
However, high operating costs and a lack of export competitiveness remain a concern for steel and othermetals producers. Overall, we do not expect Spanish metals production to return to pre-downturn levels inthe immediate future.
Spain boats one of Europe's leading metals industries and is currently the fourth largest steel producer inEurope, behind Germany, France and Italy. The company is an important base for high-quality steelproduction, with leading multinational steelmaker ArcelorMittal operating two production facilities in theAsturias region in the north of the country. The collapse of the Spanish construction and manufacturingsectors following the onset of the global economic crisis has led to a severe contraction in the country's steelproduction volume as output has fallen from About 19mn tonnes (mnt) a year in 2007 to around 14mnt. Thepast two years have seen tentative steps towards recovery, with production growing by about 4% year-onyear(y-o-y) in 2013 and remaining stable over the following year. We are forecasting a narrow contractionof 1.7% in Spanish steel output this year. However, as we look towards the remainder of the medium-termforecast period, we are increasingly confident that the worst has passed for the industry.
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