Automotive steel suppliers’ UK performance has been given a significant boost in 2012 thanks to the country’s strong position as an export market to the China region, reports NASS.
The NationalAssociation of Steel Service Centres has published its latest Steel SectorCredit Bulletin, including the views of credit insurer Euler Hermes.
In thearticle, the risk management specialist writes: “For the majority ofclients supplying into the automotive sector, the level of activity hasexceeded expectations this year.”
This followsa rebalancing from the Far East to more regional markets in 2011, boostingsteel suppliers’ UK sales.
However, theChina automotive market remains important, as nearly four out of five carsbuilt in the UK are shipped overseas into such areas of high economic growth.
Euler Hermesadds that the current focus is not simply on low-cost steel, but on finding the”best cost” for the commodity.
As theeconomy continues to develop in the months to come, steel suppliers willcontinue to work hard to provide the best-quality product at a price pointcapable of sustaining post-recession growth in the UK.