World Steel Chairman: An Oil, Gas Recovery is Still Months Off
12/28/2015 - The oil and gas sector isn’t likely to begin to recover until at least the summer of next year, World Steel Association chairman Wolfgang Eder said during an interview with USA Today.
“Inventories are extremely high now, of oil and gas, but also inventories for all the production equipment are at very high levels,” Eder told the newspaper.
“We cannot expect oil and gas levels will come down quickly over the winter as they have reached levels we have never seen before,” said Eder, who also is CEO of Austrian steelmaker voestalpine.
Eder said China’s excess steelmaking capacity continues to be a “very serious” and “critical” problem. Although he declined to project where steel prices might go, he’s not looking for a recovery in the immediate future.
“As long as overcapacity is constantly putting pressure on the market, it's unlikely we'll see a broader price recovery,” he said.
“We cannot expect oil and gas levels will come down quickly over the winter as they have reached levels we have never seen before,” said Eder, who also is CEO of Austrian steelmaker voestalpine.
Eder said China’s excess steelmaking capacity continues to be a “very serious” and “critical” problem. Although he declined to project where steel prices might go, he’s not looking for a recovery in the immediate future.
“As long as overcapacity is constantly putting pressure on the market, it's unlikely we'll see a broader price recovery,” he said.
