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The Italian steel distributor segment has a large number of relatively small companies, which are still affected by weak demand and pressure on margins.
Fierce competition, high energy costs and increased uncertainty due to the Brexit decision continue to weigh on the financial strength of many businesses.
Banks are less willing to provide loans to the steel sector, given the high default rate and the recent debt impairment from one big steel manufacturers.
External risk factors for the Mexican steel industry remain the volatility of the currency exchange rate and the impact of international metals prices.
The Dutch steel and metals sector has benefitted from a rebound in the building sector, but at the same time demand from the energy sector has decreased.