During the International Steel Trade Day organized by STSG-Eurometal in Milan on April 4, SteelOrbis interviewed Ralph Oppenheimer, chairman of Stemcor and STSG (Eurometal's Steel Trade Study Group), seeking his views on how the problem of overcapacity in the European steel market can be solved.
"First of all we have to distinguish between overcapacity in the steel production industry and overcapacity in the steel distribution industry. Regarding the steel production industry, we need help from the European governments and to take the expensive route of getting rid of capacity," Oppenheimer said.
Oppenheimer continued, "For the distribution industry, I'm afraid there is no solution other than a tough fight. Some people will either go bankrupt or close down or sell their business and eventually a better balance will be restored. There is a need for consolidation in distribution as well."