United Kingdom Metals Report 2016
BMI View: The UK metals sector will suffer further consolidation over the coming quarters as steelmakersin particular battle against an increasingly challenging climate. A collapse in global steel prices, instigatedby a surge in Chinese production, has hit UK firms especially hard given the country's high operating costs.
While a number of measures have been floated to protect local producers, as yet little action has beentaken.
The operating environment for UK metals produces will continue to deteriorate through 2016, following achallenging few years for the industry. The scaling down of Rio Alcan's aluminium operations in 2012marked the start of the decline in UK metals production which has since spread to the steel industry. Whilesteel output grew in both 2013 and 2014, we estimated production to have shrunk by 7.5% y-o-y in 2015 to11.2mn tonnes (mnt).
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