Boston, MA -- (SBWIRE) -- 02/28/2013 -- Germany's metals sector will continue to feel the squeeze in the coming quarters as output prices remain low and costs stay stubbornly high. We forecast subdued growth in consumption of key metals such as steel, copper and aluminium, chiefly due to a muted outlook for economic activity in the country. Moreover, ongoing political and economic malaise in the eurozone will ensure demand from the most important export market remains muted.

Illustrative of challenges faced by the wider metals sector, steel mills will remain under significant pressure, as low output prices squeeze margins. This will encourage consolidation of operations and dampen output growth. We forecast steel production will post only erratic growth in the coming years as low prices will continue to bite. We forecast steel output of 42.7mn tonnes (mnt) in 2017, which would be just 0.6% above 2012 output and 12.0% below the 2007 peak level.

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