Q1 2020 Vesuvius PLC Trading Update Call Transcript
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In Q1, steel production in China was relatively steady at plus 1.2%, but part of it -- part of this steel production was for inventory, which now needs to be absorbed. It is being absorbed and the good news is we are seeing steel inventory declining in China. But the same steel inventory buildup that we saw in Q1 in China may well be happening as we speak in the world outside of China.
For this reason, looking a little bit more ahead, we would expect some improvement in the foundry market in Q3. However, I would advise some caution on the steel market in Q3 because these excess inventories, which are currently being accumulated will, at some point, need to be absorbed. So there may be some time lag between the rebound in steel production on one hand, and the rebound in real steel consumption on the other hand. For this reason, we advise caution on the steel market. It's probably more towards the end of this year that a significant improvement in the steel
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