Bowim plans to open its new 4,000-tonne capacity high-bay warehouse at Sosnowiec at the start of the fourth quarter. The Polish distributor increased consolidated steel sales 18% on-year in the first half of 2018 to 256,905 tonnes.
Flat product sales rose 16% in H1 to 81,612t and pipe and hollow sections sales increased 15% to 55,217t. Rebar sales surged 55% to 51,151t and sales of sections rose 29% to 29,415t, but reinforcement construction deliveries declined -18% to 20,633t.
Consolidated revenue rose 28% to PLN 679.27 million ($186.5m) but net profit slumped -25% to PLN 7.5m due to higher cost of goods sold resulting from higher steel prices. The firm generated 21% of revenue each in the steel structures and construction sectors, while trading took a 19% share.
The increased sales were the result of continued favourable trends in the Polish distribution sector, spurred by investments. Bowim also benefited from increased steel processing activity stemming from the construction of the new Sosnowiec warehouse and its distribution centre near Rzeszow. The Sosnowiec unit will also install a cut-to-length line and railway siding at a later stage.
“The global economy is beginning to feel the consequences of the US-China conflict in the form of steel oversupply, which producers levied with duties are trying to relocate to other countries (mainly in the EU),” Bowim says in a report seen by Kallanish. “This situation could impact the level of prices, also in the Polish market.”