Polish construction growth boosts Konsorcjum Stali’s first-quarter sales

Konsorcjum Stali (KS) increased sales 16.4% on-year in the first quarter to 178,000 tonnes, boosted by a 26.1% rise in Poland’s building and construction sector output, Kallanish learns from the Polish distributor and fabricator.

First-quarter revenue rose 28% to PLN 461.06 million ($127.1m) and net profit grew 5% to PLN 11.45m.

Despite the 2-3% annual growth forecast for Polish steel consumption in the coming years, and 1.9% EU consumption growth in 2018, the threat remains of a global trade war stemming from US 232 tariffs, KS observes.

In 2017 KS increased sales 5% on-year to 639,000t (see Kallanish passim). This was driven by a 7% rise in traded product sales to 398,000t. Rebar sales rose 15% to 168,000t, but sheet deliveries fell -6.8% to 69,000t. Z and G sections sales were flat at 60,000t. Sales of KS-produced or processed products, meanwhile, rose 3.4% to 241,000t.

At an industry meeting in Poland last month KS chief executive Janusz Smolka said Polish construction projects should go ahead despite the increasing number of construction firm bankruptcies.