The cover policy which Atradius Dutch State Business maintains for a particular country is in principle valid for every transaction for that country which it is requested to insure.
Overcapacity remains the main challenge, as the rebalancing of the economy from investment and export-driven growth towards private consumption continues.
The Italian steel distributor segment has a large number of relatively small companies, which are still affected by weak demand and pressure on margins.
Fierce competition, high energy costs and increased uncertainty due to the Brexit decision continue to weigh on the financial strength of many businesses.
Banks are less willing to provide loans to the steel sector, given the high default rate and the recent debt impairment from one big steel manufacturers.
External risk factors for the Mexican steel industry remain the volatility of the currency exchange rate and the impact of international metals prices.
The Dutch steel and metals sector has benefitted from a rebound in the building sector, but at the same time demand from the energy sector has decreased.
Payment Practices Barometer for the Americas (NAFTA and Brazil) shows that 93% of respondents reported late payment from B2B customers over the past year.
In line with the survey average, 91.4% of respondents in Brazil (95.0% in 2015) reported late payment of invoices from B2B customers over the last 12 months.
While the economy is expected to slow down after a robust 4.6% in 2015, the forecast GDP growth rates of 2.5% in 2016 and 2.7% in 2017 are still solid.