Acerinox anticipates stainless order book improvement

Acerinox anticipates its stainless steel order book to improve in the latter half of the year once inventories have normalised across all markets, despite uncertainties and weakened demand.

The high-performance-alloys sector continues to enjoy robust demand, particularly in the chemical, petrochemical, and aerospace industries, the Spanish firm says in a note seen by Kallanish.

It expects good results in the third quarter, although they may be lower than those in Q2.

Acerinox posted a 2% on-year consolidated revenue decline in Q2 to €1.74 billion ($1.93 billion), but Ebitda and net profit were each up 4% to €236 million and €142m respectively.

Melting shop production was down 9% to 486,000 tonnes.

“In the stainless steel sector, the Group strategically benefits from its geographical diversification, enabling optimal operations based on market conditions. Notably, the American market has showcased positive performance, underscoring its significance as our primary market,” says Acerinox chief executive Bernardo Velázquez.

“Furthermore, through the integration of High-Performance Alloys (VDM Metals), our product portfolio has expanded to include higher-value-added products, enriching our offerings,” he adds.

“Secondly, our global production and distribution network will allow us to stay close to suppliers and customers, support the regionalisation process and improve supply chains. This situation will increase the consumption of stainless steel in strategic regions of the world where the appeal of imports has significantly diminished,” the ceo continues.

First-half-of-2023 consolidated revenue dropped 27% on-year to €3.5 billion, with Ebitda and net profit down 51% and 54% respectively to €462m and €278m. Melting shop production fell 21% to 1.02 million tonnes.

All plants in the Stainless Steel division were impacted by the reduced market stocks process and low apparent demand. Additionally, the Spanish plant faced challenges due to high energy costs, while the South African plant compensates for market weakness by continuing with its diversification programme, producing both stainless and carbon steel, the firm concludes.

Adam Smith Poland