Konsorcjum Stali (KS) expects continued strong steel demand in Poland after the country’s nine-month-through-September construction output rose 19.8% on-year. This confirms the Polish Steel Association (HIPH)’s projections of 2-3% annual demand growth in the coming years, the firm says. It will come despite a slowdown in Polish Gdp growth next year to 3.5% from 4.5% in 2018.
EU policy on trade barriers will have a significant impact on the Polish and European steel industries in the upcoming period. “Although quotas are supposed to prevent the growth of imports in the long term, they could temporarily destabilise the market – for example, (EU) imports in the third quarter this year rose 10% on-year,” KS says in a report seen by Kallanish.
KS reported a 20% on-year increase in third-quarter revenue to PLN 484.9 million ($128.1m), while net profit rose 18% to PLN 11.6m. The quarter saw a rising price trend for all products, as well as strong demand thanks to a large number of investments in construction, according to the firm. Moreover, a lack of competitive import offers and the application of EU quotas supported higher prices.
In the nine months through September revenue grew 23% on-year to PLN 1.4 billion and net profit increased 14% to PLN 28.75m.
KS sold over 630,000 tonnes of steel in 2017. It has three reinforcement fabrication plants with a combined capacity of 15,000 t/month. It also has two steel structures plants and a coil service centre. This is in addition to 13 sales offices around Poland.