Romania’s steel production in fluctuating trend following decision to stop raw steel production

Romania’s crude steel output increased gradually from 5.5mn tonnes in 2002 to nearly 6.3mn tonnes in 2006-2007. It further plunged to below 2.8mn tonnes in 2009 amid deep recession and inventory effects, but returned meanwhile and has stabilised to around 3.7-3.8mn tonnes in 2011-2012.

The output of raw steel goods followed a similar pattern and stabilised around 3.2-3.5mn tonnes [2012 data is still not final – the 8.3% y/y decline calculated by us for the year might have been lower].

What has essentially happened is that local steel mills stopped producing raw steel goods for export – since this business model is now no more cost-effective.

These are only a few of the insights in the new Intellinews Report : Romania Iron and Steel . Learn more and purchase now>>

 

Romania’s major steel export : hot rolled flats

Romania’s largest export item is visibly scrap [2.35mn tonnes in 2011, yet 22% down y/y to 1mn tonnes in 1H 2012], when it comes to either volume or value. But excluding  scrap, is not really an output item of local steel industry, other major export items are flat, hot rolled goods [hot rolled flats] and the  un-welded pipes, tubes, tubular products. The hot rolled flats accounted for nearly half of the exports in 2007 [see chart below], but werereduced by more than two times, accounting for roughly one fifth in 2011; in H1 of 2012, hot rolled flats accounted for some one quarter of  total exports. Among the items with positive dynamics  are pipes and particularly  bars [rods] – with the latter rising from virtually zero to 7.4% of exports in 1H 2012.

This is just a quick glimpse into the Intellinews Report: Romania Iron and Steel Report. Learn more and purchase now>>