Stainless Steel----European stainless steel industry back to strart point again
For the European stainless steel industry, First quarter of each year is always the best quarter in European stainless steel market.At the beginning of 2014 the European steel producers hope the European steel market can be better than 2013 . However, while under the improved economic situation in Europe European stainless steel market sentiment backdrop is getting better , but the problem of overcapacity continues to loom as a dark cloud over the European stainless steel industry .
In the past few years , European stainless steel overcapacity is as much as 20% -30 %. Europe's largest stainless steel producer Outokumpu to close its Bochum plant in Germany (Bochum) and Krefeld plant (Krefeld), will help make the European steel overcapacity margin fell to 15% -20 %.
European stainless steel producers of the local industry in terms of a failure of the industry, before you can continue to increase stainless steel prices in Europe , need to be more substantial cuts in stainless steel production capacity. However , analysts worry that the two German steel company Outokumpu may be closed during the recent period the European stainless steel production capacity last close .
Because stainless steel production cuts mean the loss of market share, so no one company willing to cut capacity. However , Outokumpu by the end of November 2013 was not a sudden reversal of the decision to the two stainless steel plant ThyssenKrupp may differ with this . Outokumpu decided in late 2013 to make , reversing its 2012 acquisition of ThyssenKrupp 's stainless steel business Inoxum . Outokumpu 's acquisition of Inoxum originally a European stainless steel industry a long-awaited merger integration transaction , when many analysts believe the move will help promote European stainless steel producers can return to profitability track.
Outokumpu steel mill will be located in Terni , Italy and VDM company reversed to ThyssenKrupp , which will allow the German steel industry again in stainless steel business. However , reducing the loss of legitimate European stainless steel industry has only three major steel producers to , again with ThyssenKrupp in stainless steel business , the European steel industry has returned to the four major producers to compete original pattern .
Stainless steel prices under great pressure due to overcapacity, as well as the case of the face of competition from Asian exporters of stainless steel , with steel mills and VDM Terni company was transferred back to the ThyssenKrupp Group , Europe competition in stainless steel markets will once again intensifying. Currently, the global steel prices are still only about half the 2007 price .
ThyssenKrupp know , based on the experience of Outokumpu to sell two stainless steel production unit takes a long time , so now turn to join the group , including Acerinox , Aperam companies and Ao Tuokun S & P companies, including European stainless steel market in the battle group . Previously, ThyssenKrupp Stainless desperate to get rid of the business , but now it also inject more money into the faces of two stainless steel unit , and seek in the next few years, the European economy improves more to attract buyers .
There was Inoxum analysts believe the company after the acquisition , Terni steel company Outokumpu is crucial to the success of reversing the situation of poor management . However, due to the presence of the European Commission worried about unfair competition , Outokumpu Inoxum to be able to acquire the company must peel Terni steel mills. Although the company did not find someone willing to Outokumpu acquired Terni steel suitable buyers, but it can now be an annual production capacity 1.7 million t, estimated in 2013 to a loss of 100 million euros left Thyssen steel Terni Krupp Group to find a buyer.
While Outokumpu steel company is looking for buyers and makes Terni plant in a year's time its future is uncertain , but the Terni steel competitors do not want to see Terni ThyssenKrupp steel Group in the future under the control of uncertainty , because these competitors know ThyssenKrupp steel will not long hold Terni , ThyssenKrupp seek Terni will bring instability to sell European stainless steel market .
Some analysts have speculated previously tried to buy steel from Outokumpu Terni hands Aperam now trying again from the hands of the ThyssenKrupp Group's acquisition of the plant . If Aperam acquired Terni mill , you might turn obsolete steel production capacity. But the case in other areas of excess steel production capacity is not closed , in a way its competitors Outokumpu in the same boat . When control of ThyssenKrupp Terni steel , Outokumpu will face competition from Terni mill again.
Of course, Outokumpu in a better position, because the Terni transferred to ThyssenKrupp Steel Group helps investors to value the debt to equity ratio from 132% by the end of October 2013 is down 30 points.
With new financing in place , Outokumpu CEO Mika Seitovirta sure it can at least get rid of the deficit to lead the company . Currently, its focus is to continue to play a reorganization synergies and drive business growth through new investments . The European Commission is expected in the coming weeks and VDM will approve Terni steel company ThyssenKrupp returned to the embrace of time has been difficult for the European steel industry is going back to square one.