Year 2010 was the second year of steelmaking market convalescence after financial crisis. In spite of this home production convalescence it wasn't even from far reached the pre-critical voluminous level and in low sales prices consequence - like next negative factor - the level of sales, too. Production costs were negatively affected by the input prices growth spiral continuation, and still weaker than usual production capacities' utilisation.
Companies’ economic measures leading to the cost reduction, aggregates break down for temporary time - could allow companies to compensate above mentioned unfavourable effects only in part. Companies had to approach to emergency operating modes, too.
Situation in order development at the year end has been better and goes well in year 2011 start, too. As weakest link of the steel consumption branches was building industry. This won't be better in 2011 and in 2012, too.
In spite of tight economic situation the companies have been continuing in investment activities namely especially in fulfilment of obligations toward environment.
Improving situation in market thereby even in economy enabled any companies (ArcelorMittal Ostrava and Evraz Vitkovice Steel) to begin consideration respectively preparation of significant modernization actions in the field hot metal production phase of the steel works.
Thanks previous development the financial condition stayed at most of companies even henceforth at the level ensuring their functioning. Companies are henceforth capable to perform their obligations.
Main hazards of next evolution from point of sustainable development view lie in the areas government economic policy, ecological legislative and power measures, which pay probably for whole EU steel industry.
2014 - The Steel Federation, a.s.
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