(Reuters) -Spanish steelmaker
Acerinox said on Wednesday that visibility would remain poor across the
European steel markets in the third quarter, as economic uncertainty translates
into slower than expected demand recovery.
European
steelmakers are struggling to recover after a severe reduction of their
inventories, as they need to tackle swings in prices of raw materials and
cooling global demand, coupled with cheaper Asian steel imports.
"Many investments are
waiting for interest rates to fall, and when this happens, it may lead to an
improvement in confidence and in consumption," Velazquez said.
The
group's core profit (EBITDA) slumped by 47% to 125 million euros ($135.55
million) in the second quarter, including a 28 million euro hit from a
five-month strike at its Cadiz steel mill in Spain.
Acerinox,
which specialises in stainless steel, said it expected its third-quarter core
earnings to be similar to those in the second quarter, as demand in Europe
remains soft.
"There is a
slowdown in all sectors in general, which could also pick up after the summer
if there is any sign of more confidence," Velazquez said, naming
automotive, construction and household appliance industries among those
affected.