One of the major areas of growth potential for the industrial gases industry is the metallurgy sector. But in recent years, metal producers have suffered setbacks in the face of slowing growth in key markets. Is metallurgy still a staple of gas demand?
2015 was a tough year for metals producers. Over-supply of almost every metal, combined with limited demand, compressed margins and suppressed any positive sentiment. 2016 was not much better, with January seeing continued poor demand for metals and high production rates spilling over from the year before. Many blamed China’s sudden and continued growth declines.
Since 2015, global production rates have started to fall for many metals. For a long time, rapid economic growth in China sucked up over-supply of metals and alloys fundamental to construction and fabrication. However, in the last few years China’s economic dash has lost steam, turning into a slow jog. Consequently, sales have fallen for top metal producers, with many citing that their top agenda is to claw back sales.
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