This is part of the priorities of the year

Steel plate to the squares of silk or stemware, industrialists and distributors of many sectors are engaged in an impressive destocking. For the moment, no one dares predict the end. overview in 3 examples.

Coup de torchon

in steel

It is that the movement started in the most spectacular way upstream. In October and November, the worsening of the crisis has prompted the industrial building and automotive to give a sudden brake. To avoid that their stocks of cars expand disproportionately to the slump, and instead reduce these expensive stocks, PSA, Renault and other manufacturers have implemented temporary stop much of their factories. In the aftermath, their suppliers took measurements of the same type. As early as November, the world leader in steel, ArcelorMittal, thus decided reduce world production by 35. And, over the months, it has continued to amplify these efforts. Goal: reduce him also its stocks and sufficiently limit the offer to avoid a fall in prices. Today, the phenomenon is not completed. Toyota, the world number one in the car, thus announced Wednesday its intention to reduce its production by 28 this year, a rate impressive, even though its sales should fall 18 at the same time. Signs that the Japanese leader continues to release. Steel suppliers are in the same logic. In Europe, 14 of the 25 blast furnaces of ArcelorMittal and stopped, "because there is no demand", explained this week Lakshmi Mittal. The CEO has recently found a recovery in China and he believes that destocking is "almost finished" in the United States. But it is not rekindle dormant plants until the market is not awakened really.

Energy

affected in turn

Even very strong sectors such as energy are now affected. Vallourec can serve here as a barometer. End of 2008, the French manufacturer of steel tubing found a fall in demand of its customers of mechanics, automotive, construction. Since February, it has also plunged in tubes for drilling oil or gas and power plants. The prudence of the user companies, which have slowed some investments in the crisis and the fall of the price of a barrel, was amplified by destocking among distributors. In the United States, they have in stock more than a year of tubes for drilling wells. Result: an air hole. In the first quarter, Vallourec sent 30 of tubes in less than in the previous quarter. The situation leads the group led by Philippe Crouzet to ease its own stocks of raw materials and semi-finished products. An effort just to start. "There is still lot to matter to adjust the need for working capital at the level of activity, indicates the direction.". This is part of the priorities of the year. "Bad news for suppliers...

Crystal under tent

Consumer, or luxury items are not spared by this great movement. In view of the decline in purchases of households, all companies in these sectors producers, wholesalers, retailers want to alleviate. Witness, the sale of tableware, decorative items, etc., organised a month under a big top by Arc International to Arques, in the Pas-de-Calais. The operation is usually in the fall. But, facing the crisis, the company first launched last week a large removal of spring, with reductions of 60, or even 70. More than 100,000 visitors are expected and should be the tail to enter! "This allows us to take stock purposes, pallets that clog." Hermes is also speaking. In the first quarter, the retail sales of the manufacturer of the famous silk scarves have resisted well. In its own stores, they grew 6 at constant exchange rates. But distributors with which it works, they bought 27 of products less.