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The ongoing concentration process in the domestic market will increasingly put small retailers with a poor capacity to generate cash flow under pressure.
A modest margin rebound, but commodity prices, price wars between retailers, changing consumer habits and difficulties in staff recruitment remain issues.
Domestic metals and steel demand is increasingly affected by subdued investment in the construction sector and a marked demand slowdown from automotive.
The number of protracted payments and insolvencies was high in 2019, and is expected to increase further in 2020, mainly affecting private-owned producers.
For many businesses both demand and profit margins are expected to deteriorate further, with a moderate rebound expected in H2 of 2020 at the earliest.
The sector benefits from the lift of US import tariffs on Canadian steel and aluminium, with profit margins of steel businesses expected to improve again.