This report does not constitute a rating action. Overview Key strengths Key risks The largest European steel dust and aluminum salt slags recycler, with a 45%-50% market share in both segments. Exposure to volatile zinc and aluminum prices, albeit limited by Befesa?s policy of hedging 60%-75% of zinc volumes. Geographical diversification almost evenly split among the U.S., Europe, and China, with substantial potential for further growth in China in the medium to long term. Exposure to steel volumes that depend on demand stemming from diverse and cyclical end sectors (such as construction, automotive, and machinery). Trend of steel industry moving to electric arc furnaces (EAF) from blast furnaces for environmental reasons. EAFs require steel scrap, which should result in more
