Market Monitor Steel Netherlands 2017

Market Monitor

  • Netherlands
  • Metals,
  • Steel

14 nov. 2017

While the outlook for late 2017 and 2018 remains positive, due to overcapacity there is on-going price pressure in most segments, affecting margins.

  • Although the steel and metals sector accounts for just 1.1% of Dutch GDP, it is important as a leading supplier for construction, automotive and machinery. Dutch steel production amounted to seven million tons in 2016, which makes the Netherlands the sixth largest manufacturer in Europe. The industry consists mainly of steel traders and wholesalers, and is highly dependent on domestic construction sector performance.
  • After some difficult years, the industry has benefitted, since late 2015, from a rebound in the domestic building sector, from rising demand from the automotive and machinery sectors and from increased exports. The overall outlook for late 2017 and 2018 remains positive.
  • However, due to overcapacity there is on-going price pressure in most segments, which negatively affects margins. Despite this, due to the benign demand situation, profit margins are expected to remain stable in the coming 12 months. Innovation continues to be important in order to focus on efficiency and to reduce costs.
  • Dutch steel makers, traders and wholesalers are higly dependent on banks for financing their stock. Banks have become more willing to lend than in previous years due to the economic rebound. However, any major steel price deterioration in the future would again make it harder to obtain additonal credit facilities.
  • Payments in the Dutch steel and metals sector take 45 days on average. Payment delays and insolvencies have decreased over the last 12 months, and both are expected to remain stable in the coming months. The insolvency level in this segment is quite low.
  • Our underwriting stance is generally open due to the current positive performance and outlook. We monitor stock levels more closely and low value added steel and metals companies, as they are very sensitive to price fluctuations. Also companies that are highly dependent on the oil and gas and shipbuilding sectors have our special attention due to lower order levels.

 

Documents associés

Avertissement

Les informations figurant sur ce site sont uniquement fournies à titre indicatif et ne doivent pas être utilisées à d’autres fins que celles mentionnées. Nous vous remercions de bien vouloir vous reporter aux réglementations et accords en vigueur. Aucunes informations ne peuvent être considérées comme créant un droit, une obligation ou engageant la responsabilité d’Atradius y compris pour juger de la moralité d’un ou de plusieurs acheteurs. Si Atradius juge de la moralité d’un acheteur, elle le fait pour le compte de son arbitrage et en aucun cas au bénéfice de ses assurés ou toute autre personne. En aucun cas, Atradius, ses partenaires ou sociétés apparentées, agents ou employés, ne pourront être tenus responsables envers les lecteurs ou toute autre personne pour toute décision ou mesure prise sur la foi des informations contenues dans cette carte, ou pour tous dommages indirects, particuliers ou similaires, même si ces personnes ont été avisées de l’éventualité de tels préjudices.