Aperam forecasts strong second-quarter volumes and higher prices after registering in Q1 its best-ever quarter thanks to record sales and prices in Europe, Kallanish learns from the company’s Q1 report.
“In Brazil our flexible multi-product business set a new earnings record due to strong demand, paired with higher prices and a strong mix,” the report says.
Steel shipments stood at 493,000 tonnes in Q1, up 14% compared to 431,000t in Q4 2020. In Q1 2020 steel shipments were 430,000 t, Kallanish notes.
The company is to invest in revamping the long product rolling mill at its Imphy facility in central France, as well as the restart of the AOD converter in Genk, Belgium, which was idled in 2019. “Both projects, together with the planned specialties centre in Gueugnon, will further contribute to the reorientation of our product portfolio towards specialties,” Aperam says.
The Stainless and Electrical Steel division had sales of €977 million ($1,188m) in Q1, up 26% year-on-year. Steel shipments were 483,000t, an increase of 12% on Q1 2020. Average selling prices for the division increased by 14% compared to the previous quarter. “Profitability was supported by higher volumes and prices and a low double-digit inventory valuation gain in Europe and a record adjusted Ebitda in Brazil due to higher prices and a stronger mix,” Aperam observes.
The Alloys and Specialties division also registered a 21% increase in sales compared to last year and high selling prices.
In total, Aperam’s Q1 sales increased by 28% to €1,177m, compared to €916m in Q4 2020 and €1,049m in Q1 2020. Ebitda stood at €175m in Q1, compared to €70m in Q1 2020.
Aperam is expanding upstream into the recycling business with the acquisition of stainless scrap company ELG (see Kallanish 11 May).
Natalia Capra France