Voestalpine - finally, although for all the wrong reasons

All,

Tonight Voestalpine published a press release announcing wide-ranging closures of capacity in the face of the Corona pandemic. We still have our short position even though it felt like the market had forgotten the name. 

Originally we thought that 2019’s woes would merely come a little later - up-stream to Austria - given the strong local demand for its products, including Austrian Rail etc. The thesis had time because the bonds traded incredibly tight. Then S&B reported continued weakness from automotive customers on Covid19 concerns. Now it seems events are compounding and the seemingly late management reaction appears to be drastic.

In turn that should spell further doom for S+B and other up-stream suppliers. 

Wolfgang