Why the supply tap keeps on running

The equivalent of the entire steel production of western Europe should be taken out of the market to bring the industry back into “a semblance of profitability”, according to Macquarie.

Commodities

Why the supply tap keeps on running

The equivalent of the entire steel production of western Europe should be taken out of the market to bring the industry back into “a semblance of profitability”, according to Macquarie.

Why the supply tap keeps on running

Speaking at a briefing in London, the bank’s head of commodities Colin Hamilton said excess supply was running at about 170 million tonnes. If that was removed, steel mills could raise capacity-utilisation from the current level of 70% to 85% [last seen in 2011] “and thereby get a return on their capital, although not necessarily make a decent margin”, said Hamilton.