Polish distributor Stalprofil has temporarily closed its Katowice warehouse after two workers tested positive for Covid-19. Orders have been redirected to its other site in Dabrowa Gornicza, some 40km to the northeast, Kallanish notes.
Operations at Katowice will be suspended until further notice and resumed when approved by local authorities, which the firm has informed about the cases.
In 2019 the Katowice site accounted for 23% of Stalprofil’s overall revenue. Its Dabrowa Gornicza site has a high loading capacity and similar product range, the firm says.
In the steel distribution market, contracted orders are being carried out without interruption despite the Covid-19 pandemic, Stalprofil observes. Domestic and export sales are at an average level despite difficulties with international logistics. Orders are also continuing to plan in the pipeline infrastructure market. Sourcing of feedstock has not been affected, the firm adds.
“The only difficulty is with contacting the departments that make administrative decisions regarding the construction of gas pipelines, as they have temporarily limited the number of staff and moved to remote contact with clients,” Stalprofil says.
Although business has so far not been affected, a protracted pandemic could result in reduced sales, a deterioration in income, supply shortages, worker absenteeism, the weakening of the zloty, and commodity price fluctuations. This could have a negative impact on Stalprofil’s 2020 results, the firm observes.
Stalprofil’s steel product deliveries rose by 653 tonnes on-year in the nine months through September 2019 to 173,904t, while steel structures sales fell 644t to 1,663t.