KUALA LUMPUR, Malaysia -
June 17, 2013 -
PRLog -- Romania’s crude steel output increased gradually from 5.5mn tonnes in 2002 to nearly 6.3mn tonnes in 2006-2007. It further plunged to below 2.8mn tonnes in 2009 amid deep recession and inventory effects, but returned meanwhile and has stabilised to around 3.7-3.8mn tonnes in 2011-2012. The output of raw steel goods followed a similar pattern and stabilised around 3.2-3.5mn tonnes [2012 data is still not final – the 8.3% y/y decline calculated by us for the year might have been lower]. What has essentially happened is that local steel mills stopped producing raw steel goods for export – since this business model is now no more cost-effective. From a net export of 2mn tonnes of raw steel goods in 2003, Romania turned to a net importer with nearly 0.5mn tonnes. Net balance of processed goods returned in the surplus area after strong demand in the pre-crisis years pushed it into the deficit area. The domestic intake of steel goods [either raw or processed – but used domestically]
has surged from 2.65mn tonnes in 2002 to 5.75mn tonnes in 2007 to shrink at 3.14 mn tonnes in 2009. Please note that the 2009 steel intake was still well above the 2.65mn tonnes intake in 2002. Steel intake further strengthened to above 3.5mn tonnes in 2011-2012. We expect it to increase more or less moderate – depending on the expansion of construction sector essentially and of ArcelorMittal Galati commitment of taking advantage of the abundant demand generated by the automobile sector. The wind power sector remains a potential customer for local steel makers – shipyards, but not as much as it was in the past years.
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