Polish steel mills record sharp year-on-year drop for first quarter of 2002

Polish steel mills produced 11.3% less steel in the first quarter of 2002 compared to the same period last year, a decline that is among the deepest in the steel sector worldwide. "This is a consequence of slowing economic growth on one hand and incomplete restructuring on the other hand," said Romuald Talarek, president of the Steel Industry Trade and Commerce Chamber (HIPH). "As a result, some Polish steel products are less competitive than foreign supplies." According to HIPH, approximately 46% of steel products consumed in Poland are imported. Polish steel mills produced almost two million tons of steel this year, in comparison to 2.25 million in 2001. Steel pipe manufacturers suffered the worst decline. Sixty-four countries recorded an average increase of 2.3% in steel production, while the European Union's production decreased by 4.5%. According to Andrzej Capiga, vice-president of the Katowice Steel Mill, the situation in the sector should improve soon. (Prawo i Gospodarka, p. 2; Puls Biznesu, p. 4) P.W.