Demand, prices lift Stalprodukt earnings

Strong demand and higher prices boosted Stalprodukt’s earnings in the first half of 2021, but the firm says it was squeezed by limited feedstock availability and logistical problems, Kallanish notes.

Electrical sheet segment revenue rose 17% on-year in H1 to PLN 452.7 million ($119m) and segment profit surged 36% to PLN 59.2m. Deliveries rose 6%, the firm says without providing tonnages.

Although electrical sheet prices rose, the growth was not as steep as seen in hot and cold rolled coil prices. The prices could still catch up with a delay, but it is difficult to say with certainty, the Polish producer says.

The firm says it is pleased with the level of demand in H1, which was boosted by constant purchases from customers in Spain and Italy, despite some restrictions in domestic activity. High permeability (HiB) grain-oriented electrical steel accounted for 27% of the Bochnia site’s production, thereby boosting Stalprodukt’s margins.

Profile segment revenue surged 55% to PLN 435.6m and segment profit soared 635% to PLN 9.9m, with shipments up 6.5%.

Polish imports of the cold-formed sections and pipe produced by Stalprodukt rose 32% on-year in H1 to 179,000t, the firm says citing Polish Steel Association (HIPH) figures. Ukraine provided the lion’s share of supply.

Stalprodukt, like other firms in the European tube sector, suffered in H1 from limited supply of feedstock, historically-high feedstock prices that were passed on to customers, and logistical problems.

Adam Smith Germany