First-quarter price surge, earlier re-stocking boost Stalprofil earnings

Stalprofil’s revenue surged 43% on-year in the first quarter to PLN 603.1 million ($140m), while net profit soared 127% to PLN 41.38m, Kallanish notes.

Restricted steel supply in Europe and therefore higher prices as a result of the outbreak of war in Ukraine, coupled with significant inventories amassed by Stalprofil before the price surge, allowed the firm to expand Q1 margins. Sales volume was up 26% on-year, the Polish distributor says without providing tonnages.

Polish apparent steel consumption rose 5% on-year in Q1 to 3.8 million tonnes, the firm says citing Polish Steel Association (HIPH) figures. The increase in prices and demand is happening as steel production declines globally, with EU27 crude steel output down 3.8% in Q1 to 36.8mt.

Stalprofil’s steel product sales rose 12% on-year in 2021 to 207,721 tonnes, with steel structures sales up 9% to 2,216t.

Adam Smith Germany