** Credit Suisse turns more cautious on the EU steel sector 
as margin recovery priced into steel equities is running ahead
of fundamentals
    ** The broker notes that current steel spot margins are
comparable to 2018 levels, but utilisation rates in 2021 will be
about 9pp below the levels recorded in 2018
    ** Slowing real demand momentum and normalising inventory
levels would contribute to reversing margin momentum at the
back-end of H1 2021, especially for early-cycle names, it adds
    ** The brokerage forecasts EU steel prices to drop by about
26% by the end of 2021 as a result of mill supply response,
higher net imports, and a slowdown in Chinese steel production
in H2
    ** CS reshuffles its coverage towards late-cycle names and
cuts ArcelorMittal  MT.LU  to "neutral" from "outperform", while
double downgrading Klöckner  KCOGn.DE  and Salzgitter
 SZGG.DE  to "underperform" from "outperform"
    ** On the contrary it ups SSAB  SSABa.ST  to "outperform"
from "neutral", and voestalpine  VOES.VI  to "neutral" from
"underperform", naming late-cycle character and long-term
contract pricing as the reason

 ((joanna.wodzicka@tr.com))