1. Latest News
  2. Submit Press Release

New market study, "United Kingdom Metals Report Q3 2011", has been published

Recently published research from Business Monitor International, "United Kingdom Metals Report Q3 2011", is now available at Fast Market Research

July 21, 2011 - PRLog -- The British steel and aluminium industries appear to be in terminal decline due to a deteriorating market  environment and regulation on emissions that is stalling recovery and raising investor wariness.  The steel industry's recovery went into reverse in H210, leading to a decline in crude output of 3.5% to  9.71mn tonnes, which was below BMI's estimate of 10.06mn tonnes due to a poorer than expected Q410.  There was little improvement going into 2011 with output in the first two months down 5% year-on-year  (y-o-y) to 1.65mn tonnes and average monthly output had not changed since previous months. As a result  of continued lacklustre growth and broader economic forecasts, BMI has revised down crude steel  production growth from 19.3% to 1.9%, with output remaining at under 10mn tonnes. Hot-rolled  production growth has also been revised down from 18.3% to 2.9%, totalling just 7.50mn tonnes, amid  concerns about declining British competitiveness. The recovery in the sector is now expected to be  delayed until 2012.  The long-term situation facing the UK metals industries is being eroded by environmental regulations  with producers voicing alarm at the carbon floor tax (CFT) outlined in the government's annual budget in  March. Tata Steel Europe, the UK's leading steelmaker, described the plan that involves setting a new  minimum price on carbon emissions as 'a potentially severe blow.' Tata Steel says that the combination  of the UK's unilateral minimum price for carbon emissions on top of the EU's measures will severely  undermine the competitiveness of the British steel industry, with higher costs for generating electricity  hitting energy-intensive industries such as steel. It is a unique tax not borne by any other steelmaker in the  world and BMI believes it could bring about the demise of large-scale steel production in the UK.  Rio Tinto Alcan, the UK's sole primary aluminium producer, has also cast doubt on the future of its  operations due to the 2011 Budget's measures and has stated that the future of the Lynemouth smelter, the  largest of the UK's two remaining primary aluminium plants, is at risk. The Lynemouth smelter is also in  danger as its captive coal-fired power station may also have to close under the EU's Large Combustion  Plants directive. The UK has already been hit by the closure of the Anglesey smelter in response to a lack  of long-term supply of cheap electricity, with primary aluminium production capacity now down to  221,000 tonnes per annum (tpa). Smelter closures are unfortunate, given the British aluminium industry's  reputation for being highly efficient. The closure of capacity would invariably increase the UK's reliance  on imported aluminium as well as boosting demand for recycled aluminium. While we forecast a 90%  return to operating rates from 2011, this is weighed down with negative risk with the very real prospect of  one or both of the country's smelters closing amid adverse market conditions.  Ironically, this will benefit less regulated smelters in Asia, which have fewer restrictions on carbon  emissions. The transfer of metals production from the UK to lightly regulated emerging markets    undermines the ultimate objective of the British government of reducing global carbon emissions. On the  upside, there is growing evidence that recovery in the British steel industry will be led by high value  niche production, which is returning back to developed economies from emerging markets. In their drive  to cut costs in a highly competitive market, automotive majors are sourcing parts and components from  developing economies where investment has improved the quality of the manufacturing process, to the  detriment of British automotive suppliers. However, producers report growing interest in British high-end  engineering and BMI foresees a revival of the sector. Yet, growth will largely apply to steel service  centres, rather than upstream continuous casting which BMI believes is in a process of decline in line  with the changing structure of the domestic, European and global economies.
About Business Monitor International

Full Report Details at
- http://www.fastmr.com/prod/208453_united_kingdom_metals_r...

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets.  BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports.  Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports.  View more research from Business Monitor International at http://www.fastmr.com/catalog/publishers.aspx?pubid=1010

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

# # #

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

--- End ---

Click to Share

Contact Email:
***@fastmr.com Email Verified
Source:Fast Market Research
Location:Massachusetts - United States
Industry:Industrial, Manufacturing, Energy
Tags:Steel, British, Aluminium, Smelter, Emissions, Carbon, Closure, Economies, Metals, Automotive
Verified Account Email Address
Verified Account Phone Number

Disclaimer:   Issuers of the press releases are solely responsible for the content of their press releases. PRLog can't be held liable for the content posted by others.   Report Abuse

Latest Press Releases By “


Trending News...

Like PRLog?
Click to Share