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Steel industry observers are skeptical about the Serbian governments plans to restart production at Zelezara Smederevo (ZS) after a Russian company failed to place a bid to buy the flat products producer that was sold back to the government by US Steel for $1, American Metal Market reported.
The Serbian government has agreed to act as a guarantor on raw materials purchases, a ZS executive said. But one European analyst told AMM sister publication Steel First: "Nobodys going to sell raw materials to them."
Another factor potentially hindering ZS potential acquisition of raw materials is the lack of markets to which the plant could sell its material, a third analyst said, noting that a restart of the furnace itself would also mean a "massive cost" for ZS. That cost could go as high as $10 million, according to a Serbian press report last week quoting a source close to the plant.
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Povezane vesti na srpskom
Συναφείς Ειδήσεις στα Ελληνικά