Is Spanish stainless steel mill now facing closure?
Is Spanish stainless steel mill now facing closure?

4 April 2024 – The fronts in the strike at a well-known Spanish stainless steel manufacturer, which has been going on for almost 60 days, are hardening more and more. The company is now even threatening to close the mill completely if necessary. And the US industrial stocks in the S&P 500 are robust and in some cases at historically high levels.

Is Spanish stainless steel mill now threatened with closure?

The escalation spiral continues in the dispute between the Spanish stainless steel manufacturer and its workers. After almost 60 days of strike action, vandalism and a deliberate fire at the plant site now appear to have occurred. In the meantime, the group has even threatened to close the mill completely if necessary.

Real danger or just hollow threats?

It should be clear to everyone that these are just hollow threats to influence Spanish and European politics. In particular, because otherwise all EU market protection measures would be null and void, as the two remaining large stainless steel mills would otherwise assume an unacceptable monopoly position.

US industrial shares at a historically high level

Over the past twelve months, the industrial stocks in the S&P 500 achieved a return of a good 26% in euro terms. The momentum in many sub-sectors in particular, such as shipbuilding, construction and engineering, is at a historically high level. The sector as a whole is also benefiting from long-term investments in infrastructure as part of the Inflation Reduction Act and an improving supply chain ecosystem.

In addition, interest rate cuts are likely to boost demand for goods in the coming quarters. Profit growth in the US manufacturing industry should therefore remain higher in the longer term.

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