Antonio Marcegaglia to Siderweb: coils will raise up to 2017
“The coils escalation is not completed yet”. This is the vision of Antonio Marcegaglia, Chairman and CEO of the homonymous steel manufacturing group, who explains in an interview to Siderweb his vision on the current market dynamics. “Today we are facing high rises on raw materials”, says Antonio Marcegaglia, “both on minerals and coke. In this case, I believe we can identify a key speculative element […] besides to this dynamic a sort of “psychological stop” to imports due to recent antidumping investigations started. These sustain the flat product increase in Europe […]”. This market trend could also led to better results for Marcegaglia that announce a good marginality in 2016 with a consolidated EBITDA of 325 million Euros, equals to +10% compared to the previous year revenue.
While on the antidumping, Marcegaglia continue to express its concerns on a European level (Antonio Marcegaglia participated to the recent meetings of the CIHRF Consortium - Marcegaglia is among its associates - with the European Institutions). […] “Referring to the European investigations on coils, we have expressed our point on view on imported products from Brazil, Iran, Russia, Serbia and Ukraine during the recent consultations. To the EU Officials we confirmed again that considering a whole market of steel flat products in Europe of about 75 million tons, 90% of material comes from European manufacturers, while the other 10% is imported. Of this 10%, 2% comes from China, 6% from the Countries under investigation while the 2% has different origins. Chinese products are already in the spotlight. If also the other 6% will be hit, the risk is to create a oligopoly that could annihilate the entire transformation and distribution independent chain due to a potential prices escalation that will be difficulty controlled. Moreover, I believe that imports create a sort of “quality acceleration” effects on local producers, not only European manufacturer, who are encouraged to reach better performances. An effect almost absent in a closed market”, concludes Antonio Marcegaglia […].
source: interview - Davide Lorenzini for Siderweb
Read here the full interview.