Ratings agency Moody’s Investors Service already had negative outlooks for steel industries across the world, largely based on weak fundamentals in 2019, but the Covid-19 outbreak has made conditions worse and prompted the agency to cut the outlook for steel industries further.
Moody’s says the coronavirus outbreak exacerbates the already challenging operating environment for steelmakers around the world. The broad macroeconomic weakness spreading in the wake of the pandemic is driving down demand for steel in core industries such as manufacturing, automotive, construction and oil and gas exploration.