Outokumpu sees first-quarter deliveries growing 10-20%

Stainless steel group Outokumpu expects first-quarter deliveries to jump significantly compared with Q4 levels, Kallanish learns from the company’s annual results.

“The demand for stainless steel is strengthening and both business areas Europe and Americas are expected to see a seasonal increase in volumes,” Outokumpu says. The jump in Q1 deliveries should be 10-20% on-quarter globally, it adds.

In 2020 the group’s steel deliveries reached 2.1 million tonnes, almost in line with 2019 levels. Turnover was nevertheless down by €800 million ($959.6m) to €5.6 billion ($6.7 billion) and net loss reached €116m compared with a €75m loss in the previous year.

Going forward, the company says it will continue focusing on strict cost and capital discipline, strong customer engagement, and a lean and delayered organization. In Q4 Outkumpu significantly reduced its headcount to make the group leaner and more competitive.

Group chief executive Heikki Malinen has again called for stronger import barriers in Europe for stainless steel. “Import penetration into Europe remains high despite a decrease to 24% in the fourth quarter,” he observes. “We continue to call for available trade enforcement tools to be applied in full to restore a level playing field and secure a sustainable future for the European stainless industry.”