HOW STEEL AND OTHER METAL CRISES CAN HAVE EFFECTS ON COMPONENT MANUFACTURING IN EU COUNTRIES AND THE SOLUTIONS.
The EU is the second largest producer of steel in the world. The steel industry is closely connected to other processing and ancillary industries like Casting manufacturing. Casting industry in turn is connected to food machinery, construction parts, oil and gas equipment, marine parts and general engineering components Hence the Steel industry can largely affect some critical industries we come across in our daily lives. Production of steel in EU countries fell down in 2022 by approximately 8-13%. Many steps have been taken to improve the market conditions but the growth output is likely to be seen at 2 to 2.5% in 2023. This is not only limited to the steel industry. Other Non-Ferrous alloys like aluminium, zinc, and copper have also been affected badly. Aluminium production of the region also fell down significantly in 2022. Out of 4.8 million mt, more than 1 million mt of aluminium production shut down. The end consumer is already feeling the inflationary pressures and recessionary signs have started to show across the globe.
Energy crisis in European countries after the pandemic resulted in a production slowdown. Many of the smelters were required to close their business or cut down the production capacity.
Effects of the economic crisis on various industries:
Volatile metal prices significantly affect the operations of Investment casting companies leading to margin squeeze for Investment Casters. Almost all the industries require machine parts or metal components including earth moving, oil and gas, food processing, marine and general engineering industry. This crisis directly or indirectly affects all the sectors.
Solutions to cope with metals crisis in Europe:
Steep downturn in metal production can have an extensive impact on the European economy. The experts are working on improving the situation. But, results can't be seen overnight. Shifting manufacturing/sourcing base to outside of Europe seems to be the most practical solution to deal with the current situation.
To get out of this dire situation, the best solution is to import metal parts from India. India offers a long term solution for importing High Quality Cost Effective metal components with stable government & policymaking. Investment casting manufacturers like Austin Alloy Cast Pvt. Ltd. extensively supply investment cast components to major EU countries like Germany, France, Spain, Netherlands, Sweden, Finland, and Romania. Austin Alloy Cast is also a reliable partner for investment cast components for companies in North America. Talking about metal or alloy requirements, the region's favourable geo-political condition is sufficient to acquire alloys required for the metal components production.
For more industry specific or project specific details, contact below given details.
Source :
https://www.tbsnews.net/bloomberg-special/great-copper-squeeze-coming-global-economy-502110?amp
https://www.ft.com/content/0906df5d-1b92-4de1-95d6-3ae7b1055897
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