Klöckner & Co expects a considerable increase in steel shipments in the third quarter, in comparison with the corresponding 2024 period.
The distribution group’s expectation is driven by continued robust demand at its US subsidiary Kloeckner Metals Americas. Additionally benefiting from a higher price level in North America, the company expects considerably higher revenue compared to the prior-year quarter.
In Q2, shipments were on par with the prior-year quarter at 1.2 million tonnes, In North America, the company was able to increase shipments to a record level of 762,000t, while weak demand in Europe led to shipments falling to 402,000t, from 423,000t. Consolidated revenue fell to €1.6 billion ($1.9 billion), from €1.8 billion, due to lower market prices.
Net income increased considerably, marking a turnaround to the prior-year quarter – it came to €2 million in Q2, after a net loss of €23m in Q2 2024.
During a conference call streamed from Klöckner’s Düsseldorf headquarters, chief executive Guido Kerkhoff also addressed questions about the company’s commitment to low-emission steel, following ArcelorMittal’s suspension of energy transition investments in Germany.
Klöckner introduced its brand Nexigen three years ago, and Kerkhoff emphasised that “we are happy we positioned ourselves at an early stage”. He said the conversion “is a question of cycles” and that conversions need substantial time. “It remains to be seen in what waves a transition will prevail; you cannot make a prediction,” Kallanish heard him say.
Christian Koehl Germany
