Market Monitor - Focus on steel and metals - Canada

市场监测

  • 加拿大
  • 金属,
  • 钢铁

2015年09月10日

Competition in the sector is high, and there are clear signs of price wars as the industry is struggling with overcapacity and weaker demand.

  • In 2014 the Canadian steel/metals sector recorded 5.5% production growth, up to CAD 47.1 billion. However, since the end of 2014 and into H1 of 2015 growth slowed down, mainly due to decreased demand from the energy sector. This has resulted in growing overcapacity, decreasing sales prices and profit margins. While the lower Canadian dollar has increased steel export opportunities, global overcapacity issues have reduced this potential upside for Canadian businesses.
  • Competition in the sector is high, and there are clear signs of price wars as the industry is struggling with overcapacity and weaker demand. This is ultimately expected to result in reduced financial strength - especially for smaller and medium- sized players.
  • The average payment duration in the industry is 90 days. Payment delays have increased since the end of 2014, and are expected to rise further in the coming months, especially in the energy and mining related subsectors. Due to overcapacity concerns many companies are facing inventory issues, which is stalling their cash conversion cycle.
  • In general, our underwriting stance remains neutral for metals manufacturing and steel, however we have become restrictive on the energy and mining related segments due to the on-going problems in these industries.

 

相关资料

免责声明

Each publication available on or from our websites, such as, but not limited to webpages, reports, articles, publications, tips and helpful content, trading briefs, infographics, videos (each a “Publication”) is provided for information purposes only and is not intended as a recommendation or advice as to particular transactions, investments or strategies in any way to any reader. Readers must make their own independent decisions, commercial or otherwise, regarding the information provided. While we have made every attempt to ensure that the information contained in any Publication has been obtained from reliable sources, Atradius is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information in any Publication is provided ’as is’, with no guarantee of completeness, accuracy, timeliness or of the results obtained from its use, and without warranty of any kind, express or implied. In no event will Atradius, its related partnerships or corporations, or the partners, agents or employees thereof, be liable to you or anyone else for any decision made or action taken in reliance on the information in any Publication, or for any loss of opportunity, loss of profit, loss of production, loss of business or indirect losses, special or similar damages of any kind, even if advised of the possibility of such losses or damages.