Turning The Corner: Global Metals Outlook - Part One

The past year has been a volatile one for the global metals industry—to say the least. Plummeting commodities prices, frozen credit markets, and diminishing demand has caused many metals manufacturers to take drastic measures in order to survive. What lies ahead for the sector? To find out, Deloitte Touche Tohmatsu's ("Deloitte") Global Manufacturing Industry Group turned to a panel of metals industry leaders, including Nick Sowar, Claude Martin, and Dick McLaughlin, for perspectives on the state of the global metals industry—and what to expect down the road.

Q: How Has The Global Financial Crisis Impacted The Global Metals Industry?

Nick: It's been quite dramatic. It is almost as if you can't find customers anymore—they have become phantoms. Capacity and supply continues to be reduced. Take steel — world crude steel production was 86 million metric tons in January 2009, 24 percent lower than the same month last year¹. So it's not surprising that so