The outlook for Romania’s steel industry is mixed: while some companies invest in new production facilities, or in upgrading existing ones, one large global steel group [Mechel] mulls over pulling out from the country; so far it only decided to cut its local workforce. Both strategies, investing and dis-investing, are however responses to the same challenges: weak profitability. Low utilisation rates, seen globally as well as locally, add to weak demand and result in falling EBITDA margins. The new investments in Romania, quite notable particularly compared to the feeble investment activity in other sectors, are aimed at replacing outdated facilities rather than expanding the production capacity. Nonetheless, even opening again production lines closed in 2008, as it was the case with ArcelorMittal Galati, is encouraging.
Romania Monthly Crude Steel Output
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