Analysts have said that steel sector may face ...
Analysts have said that steel sector may face continuing trend of decline in production during 2009 valued at least 10% YoY. They shall be the biggest nosedive since previous 60 years. It has been analyzed that the output may recover to 2007 levels taking at the least four years. Hence, the duration of predicted downturn shall be the fifth occasion in past century excluding world war when steel industry slump continued for four years.
Steel sector is one of those businesses which were worst hit by global economy meltdown and credit crisis which brought it down from top to bottom performing level. The share prices of many steel companies declined by more than one third since middle 2008.
The production of steel is expected to decline by 13.9% during 2009 as compared to 2008 levels. Since Second World War, the biggest decline in steel sector was 8.7% recorded in 1982. In that time, the steel industry kept on falling for three convective years.