With steel prices regaining momentum in Europe, SZG provides attractive leverage to the domestic strip steel market. Positively, management fails to see any crack on the horizon and expects full utilization in coming quarters. However, we still remain concerned by headwinds from leading oil and gas end market exposure which will endure in FY21 and keep the plate and tubular businesses in negative EBT territory. Although we revise our estimates upward, FCF will remain under pressure as capex stays elevated while working capital pressure builds amid surging prices. Stripped out from non-recurring items, Q4 unveils lacklustre performance 4Q20 results displayed poor operational performance buried under a plethora of one-off effects. Excluding the benefits from the real estate and provision gains of EUR 65m as well as a negative capital gain tax impact of EUR 25m, SZG''s EBT performance was actually still negative in the quarter, well below earlier expectations. Despite generally shorter-term contracts, the sequential recovery in SZG''s steel margins lagged industry peers, disappointing hopes of stronger leverage. Quantitative guidance clashes with forward-looking commentary For a company known for being conservative, management painted a rather bullish picture of the market. Optimistic for Q1 absent of ''force majeure'' headwinds, SZG sees order books full up to Q2 and expects utilization high into H2. Plus, imports are nowhere to be seen. However, SZG, true to its style, decided not to hike its EBT guidance of EUR 150-200m that we now easily surpass on a still very conservative commodity price deck. FCF burn to continue into FY21 following capex hike; downside risk to working capital build Despite having well managed working capital into year-end, management can do little to shield from the effects of surging steel and raw material prices. As a result, and due to the unexpected increase in capex, the FCF burn should continue into 2021 (7th...