Signals of a recovery in the European stainless steel market are evident, especially in those sectors that were hit earlier than others by the recession, Italian longs producer Cogne Acciai Speciali says.

The company has asked the government to extend its workers temporary layoff compensation scheme, but emphasises that this doesn’t mean the production situation is getting worse. “On the contrary” Cogne says in a statement seen by Steel Business Briefing.

Although the company is still working at reduced capacity, it is registering slightly better order volumes, and the number of layoff hours has been significantly reduced, the company indicates.

The cycle reversal is gradually consolidating in the stainless steel sector and should take place in the first quarter of 2010, Cogne forecasts.

 

Steel Business Briefing, 17th November 2009