Economy
June 26, 2016
What Does Brexit Mean for Steel, Aluminum and Iron Ore?
Written by Sandy Williams
The United Kingdom surprised the world by voting for an exit from the European Union on Thursday. Steel Market Update asked John Anton, Principal Economist-Steel at IHS Global Insight to provide us his insights into what this might mean for the global market.
GDP growth in the EU27 is expected to lose 0.2 percent in 2016 and 0.8 percent in 2017 (revised down from +1.7 percent to +0.9 percent) following the UK’s exit. The impact on commodities is expected to be limited. According to Anton, global supply and demand will not see much impact. Prices will be affected very little since they fell so much in 2014 and 2015 that there is little room left before reaching the variable cost of production.
