Poland’s economy will grow faster in 2020 than the EU average thanks to investment activity, private consumption and strong construction and railway expansion activity. The road infrastructure sector, however, is beset by delays caused by problems at contractors due to rising labour and construction material costs, according to Konsorcjum Stali (KS).
The latter issue was evident particularly in the third quarter. It could, however, have a positive impact in that it will push steel consumption back to the following quarters, KS says in a report seen by Kallanish.
KS’ consolidated revenue in Q3 fell -7% on-year to PLN 450.1 million ($105.3m) and net profit plummeted -82% to PLN 2.04m. Performance was impacted by the continued price downtrend, precipitated by reduced demand, destocking at distributors and declines in scrap prices. Long products prices fell more steeply than flats. KS nevertheless kept shipments flat on-year, it says without providing tonnages.
In the nine months through September revenue dropped -7% on-year to PLN 1.3 billion and net profit fell -80% to PLN 5.7m.