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Fri June 14 2024

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Severfield sees steel market 'rebalance' as rivals go under

16 Nov 11 Severfield-Rowen believes the constructional steel market is continuing to adjust to shrinking demand, as more of its competitors disappear.

Steel production is now running a third lower than in 2008, and firms which have closed or gone into administration recently include Barratt Steel Buildings.

An interim statement from Severfield-Rowen said it “remains cautious about the market outlook in the UK and continues to plan on the basis of subdued demand and relatively tight pricing. In recent weeks two more competitors have ceased trading, which supports the company's view that supply/demand rebalancing is continuing”.

The firm's UK order book remains steady at £230 million, and it is confident of achieving its targets in the UK for 2012.

Abroad, prospects for its India business JSW Severfield Structures, are “very positive”.

“Our value offering, of design enhancement, volume manufacturing, product accuracy and rapid site erection, is gaining increasing traction with clients, which has translated into a growing order book currently standing at £61 million,” the firm said.

Summarising, Severfield said it “remains on track to deliver a result for the full year that is in line with management's expectations.

“Looking further ahead, while the UK market will be tough for the next few years, the company expects to consolidate further its position as market leader.”

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