Financial Daily from THE HINDU group of publications
Wednesday, Feb 05, 2003

News
Features
Stocks
Port Info
Archives

Group Sites

Industry & Economy - Steel


German steel industry to hold output at '02 level

Indrani Dutta

KOLKATA, Feb. 4

THE German steel industry is planning to maintain its 2003 production at the level of 2002, even as the market leader Arcelor is planning to downsize its workforce.

Prof. Dr A. Ameling, Chairman of the German Iron and Steel Institute, told Business Line that this production planning, which would restrict production around 44.9 million tonnes against 45 million tonnes of 2002, was being planned on the basis of the forecast given by customers. "This is all that the market can take'', he said.

The automobile sector which, with a consumption of 11 million tonnes was the biggest buyer, was preparing for a negative growth rate of one per cent as was the construction sector. The machinery sector and the electrical goods sector were planning for marginal growth in production.

Dr Ameling, who was here in for a steel seminar, said that worldwide overcapacity was not that high. "On the higher side it might be about 100 million tonnes which needs to be cut - but is not in the range of 200 million tonnes as was being estimated''. However, the German expert who is also the President of the German Steel Union, said that although within the European Union there were no subsidies, in other countries there were subsidies which needed to be cut.

The German steel industry has overcome its problem of low prices and all the companies including majors like ThyssenKrupp, Saltzgitter and Arcelor were in the profit mode. "However, one would like the margins to improve further and cost cutting, along with increased prices were being relied upon to boost the bottom line'', he said. Another round of price increase of around 100 euros per tonne has been announced the by the country's steel majors for the first quarter of 2003.

Market leader Arcelor is also planning a price increase from April even as it is looking at cost cutting as part of its restructuring exercise. The industry employee strength of 1,00,000 is set to decrease by around 2,000 mostly one account of downsizing at the three plants of Arcelor.

As for any import restrictions, Dr Ameling said that although Germany did have some minimal restrictions by the way of tariffs on imports from the Third World, exports from these countries have not reached the requisite level as yet.

Asked to comment on the Indian scene, he said that although he had not studied it in detail, it seemed that a big chance was emerging for the steel manufacturers especially in the infrastructure sector.

Article E-Mail :: Comment :: Syndication

Stories in this Section
BEL to unveil Skyshield


NAL unveils prototype of Saras
Meet to promote ties with Australia
Judicial officers' conference
System soon to cut arbitration costs
Bengal chalks out plan to get Rs 500-cr additional revenue — Blames Centre for fiscal mess
Fiscal responsibility Bill cleared
Raja Chelliah for changes in norms for Central fund transfers
Naidu to inaugurate healthcare meet
Bangalore hotels are houseful!
UP wooing private sector
23 oil, gas deals signed
Govt hikes oil royalty Gujarat, Assam to be richer by Rs 400 cr
Drug wholesale traders to seek tax relief
Unscheduled load-shedding may be inevitable: Mescom
German steel industry to hold output at '02 level
`Raw deal for district small-scale bodies'
Need for Mumbai metro stressed
Pro-green body detects pesticide residues in bottled water
Diversion of Godavari waters
Water level declines
DD to feature live debate on cricket
Drop in funds affecting education quality: Study
Former IBM analyst to head TIS
ICSI outlines steps to face challenges
Confectionery industry seeks 8 pc excise duty
Bangalore has potential to be export hub: Jewellers
Retail and entertainment take up most realty space
Leather fair garners Rs 509-cr business
Meet to promote apparel exports
Will new subsidy scheme help loom producers?
Cabinet mum on Govt rights in HPCL post-sale
`Strike will hit HPCL, BPCL valuations'
Panel for state-level review of WTO pacts
Thiruvananthapuram Engagements
Lorry owners' conference
UN tech transfer centre to boost entrepreneurship
Relaunch export profit reserve scheme: FIEO
Case against Air India officials — Ministry to vet options


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line