United Kingdom steel industry set for slow recovery
According the analysts at Research and Markets the British steel industry is set for a slow recovery following another dismal year in 2010, although the planned acquisition of Tata Steel's mothballed complex in Teesside by a Thai steelmaker is welcome news in an otherwise gloomy outlook.
The recovery in British steel production that built up in Q409 appeared to slip away in 2010, with the slowdown in H210 far worse than anticipated. From the peak of 1.16mn tonnes in December 2009, monthly output fell in subsequent months to well below 900,000 tonnes per month, as the pace of recovery slowed and the country's economy looked set to dip into another recession.
In Q410, production was down by 20% year-on- year (y-o-y) but was up 3% quarter-on-quarter (q-o-q), indicating a modest upturn. The flagging performance in 2010 comes after crude output had slumped 25.6% y-o-y to 10.06mn tonnes and hot rolled output declined 21.6% to 7.46mn tonnes in 2009.