Stainless steel is gaining popularity among consumers
The Finnish company «Outokumpu», the main area which is the smelting of stainless steel, during the period from April to June inclusive to an even greater extent increased our production capacities and, consequently, financial performance, reducing the previously reported loss by reducing costs and despite negative cash flow. The third quarter promises to be somewhat worse in performance. Despite the low cost of stainless steel in the current year, the company is steadily afloat, given that its products are in great demand in European countries. For the period from April to June, volumes of supplies of products «Outokumpu» amounted to 675 thousand tons. The company continues to improve its performance, it is responding to the expectations of management.
In July-September, analysts predict a slightly larger loss than in the second quarter, given the seasonal decline in the EU market. However, the overall demand for stainless steel is sufficiently high and «Outokumpu» looked forward to further progress, despite the fact that the pace of development will be less rapid. In the current year, the company in addition to the sale of assets increased the share issue, 30% of which belongs to the state. «Outokumpu» in April-June of the current year has reduced operational losses to a level of 6 million EURO, while according to preliminary estimates the level of losses had to be of the order of 13 million EURO. The third quarter promises to be more successful in terms of the base cost of stainless steel at decreasing volumes.
In Sweden, for the current period the smelting of stainless steel increased by 6%, in Slovenia the level rose by 2% compared to the same period last year. In Germany the smelting of stainless steel decreased by 20% compared to the same period last year. According to the data provided by the company «Damstahl», during the first six months of the current year the level of consumption of stainless products was satisfactory, the second half promises to be stable in terms of demand in the stainless steel from users. Lately stainless steel is quite popular and widely used material, according to the expectations of the analysts of «Damstahl» the demand for cold rolled products in the European markets will increase by 3−4% in 2014. Today the company «Damstahl» one of a kind pan-European provider of wholesale products, stainless steel products, providing customers with over year of about 66 thousand tons of steel.