German steelmaker
Salzgitter has announced that it no longer expects to break even for 2012 due to the deteriorating economic outlook for
Germany and the euro zone caused by
Europe's debt crisis. The company previously anticipated positive earnings for the current year.
According to
Salzgitter's statement, many steel processors and traders are expecting business to stagnate. Having replenished their stocks in the first quarter, they have adopted a wait-and-see stance which has a notably negative impact on demand for rolled steel.
If international demand for German industrial goods remains healthy, and particularly given the currently moderate inventories of rolled steel,
Salzgitter believes that the steel market might stage a recovery in late summer.