EOW May 2007

english corporate news

Steel output in China set to rise by 17% this year China will account for almost a third of the total world production of steel in 2007, and consume nearly all of its additional output, according to a special report included in the Global Sectors Outlook (December 2006) from Euler Hermes, the world’s largest credit insurance group and part of Allianz. Chinese output should increase by 10% in 2007 – three times more than its nearest rival, Japan. Main end-user markets for Chinese steel include construction (55%), capital goods (12%), automobiles (5%) and household appliances (2%). Even with its increased capacity, China will need to import steel in order to keep up with demand. Brazil, Russia and India, who together with China make up the BRIC alliance, will also increase steel production in 2007, assisted by modernisation of production apparatus, cheap labour, and access to natural resources including iron ore,

essential to the good running of blast furnaces for cast iron, for which they account for 65% of world production. “The exponential growth in steel prices has not resulted from a traditional imbalance between demand and supply, but rather from the explosion in upstream raw material prices such as those for iron ore and scrap,” explained Mr Philippe Brossard, head of research for Euler Hermes SFAC. “China’s voracious appetite for commodities helped to tighten the market: on its own the country will this year account for more than 40% of world iron ore imports, mainly from Brazil and Australia. “Even so, a lull in steel prices seems likely in 2007, with prices slowing from the second half of 2007 in line with the slowing of the world economy.” Steel sector forecasts are founded upon the microeconomic expertise of Euler Hermes group underwriters and analysts, who closely monitor risk in companies worldwide through its network of 30 local subsidiaries. Euler Hermes SFAC – France Fax : +33 140 705 017 Website : www.eulerhermes.com

DSE strengthens its position in India DSE A/S, Denmark, has reported growing demand on the Indian wire market. To strengthen its position on the world market, and to offer extended service to customers in India, the company has entered into an agreement with a new agent in India: Mr Nara from Vertical Technologies. DSE A/S is a high technology company founded in 1981. The company is organised in two divisions, engaged in airport solutions and test solutions. Division specialises in high-quality control equipment for the wire and cable industry and advanced test systems for telecommunications, information technology and the electronics industry. The Test Technology

DSE A/S – Denmark Fax : +45 7561 5895 Email : dse@dse.dk Website : www.dse.dk

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EuroWire – May 2007