EoW January 2010

corporatenews

Better outlook prediction from worldsteel The World Steel Association (worldsteel) is predicting that apparent steel use will have contracted, worldwide, by –8.6% to 1,104mmt in 2009 after declining by –1.4% in 2008. This is an improved figure over the spring forecast issued in April 2009 when a decrease of –14.1% was predicted. The improvement is largely due to exceptionally strong growth in steel demand in China. With signs of a recovery slowly becoming apparent, global steel demand in 2010 is forecast to grow by 9.2% to 1,206mmt, a recovery to the level of 2008. Commenting in October 2009, Daniel Novegil, chairman of the worldsteel economics committee, said: “The global recovery is stronger than we predicted in April. According to our current forecast, China will rebound 19% in 2009 and 5% in 2010. Emerging economies will slow down 17% in 2009, to grow 12% in 2010. Apparent steel use in developed economies, that contracted 34% in 2009, will rebound 15% in 2010. Therefore, worldsteel forecasts moderate growth in global steel demand in 2010. As before the financial crisis, the emerging economies, especially China, will be the critical factor in driving world steel demand in the near future.“ World Steel Association – Belgium Website : www.worldsteel.org Takeover talks halted Cable maker Prysmian has called off talks to take over the Dutch company Draka Holding NV. In brief, separate statements on 10 th September 2009, Prysmian and Draka said they could not reach agreement on the main terms and conditions. When talks were first announced, Prysmian was worth about €1.77 billion, dwarfing its nearest rival Nexans of France, and Draka around €325 million, according to data from Reuters. By 10 th September, Prysmian was esti- mated to be worth around €2.5 billion and Draka about €548 million. Prysmian – Italy Website : www.prysmian.com Draka Holding – The Netherlands Website : www.draka.com

Furnace worker at the Edgar Thompson plant, Pennsylvania ▲ ▲ (photograph courtesy of World Steel Association)

17

EuroWire – January 2010