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Outlook 2017

In its forecast published in July 2017, the International Monetary Fund predicts global economic growth of 3.5% in the current year after 3.2% in the year 2016. However, there is considerable uncertainty regarding the impact of the policies of the newly elected US government. Although the environment in the advanced economies improved, especially in Europe, the pace of growth in the emerging markets will continue to influence the global economy to a significant extent. Based on a current study, the research institute CRU expects a decline in steel production in China by roughly 1% in the year 2017 and an increase in steel production outside China by 4%. Based on these estimates, RHI expects a more positive market environment in 2017. The focus will stay on the generation of free cash flow in the current financial year in order to reduce net debt further. Due to the preparations for a successful completion of the planned combination with Magnesita and the integration of the two companies, external costs will be incurred.



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