Stalprofil’s steel product deliveries fell -1% on-year in 2019 to 215,839 tonnes, while steel structures sales fell -15% to 2,374t, Kallanish notes.
In its infrastructure segment, sales of anti-corrosion coated steel pipe fell -27% to 1.56 million square metres due to lower deliveries to gas pipeline operator Gaz-System.
Consolidated revenue fell -2% in 2019 to PLN 1.43 billion ($341.7 million), although exports inched up 0.1% to PLN 122.3m. The EU-28 accounted for 88.9% of exports, with countries outside of the European continent raising their share in exports by over 1 percentage point to 1.4%. Net profit declined -36% to PLN 21.8m.
ArcelorMittal, which holds a 31.48% stake in Stalprofil, accounted for 18.5% of the distributor’s procurement in 2019, down from 28.9% a year earlier. Polish pipemaker Ferrum increased its share to 11.1% from 8.4%, but Greek firm Corinth Pipeworks saw its share decline to 3.8% from 13.5%.
The firm says that, apart from temporarily closing and then reopening its Katowice warehouse earlier this month, it is yet to feel any impact from the Covid-19 pandemic on its business. In the steel distribution market, contracted orders are being carried out without interruption despite the pandemic. Domestic and export sales are at an average level despite difficulties with international logistics.
However, there is a risk of disruption to sales and therefore potential impact on Stalprofil’s financial performance, the firm concedes.
In 2020 the firm is focusing on the construction of a new automated high-bay warehouse at Katowice, which is seen as a “… response to the latest steel distribution trends,” Stalprofil says. It will further widen the firm’s product offering and improve customer service.
This week, Stalprofil had its offer accepted by Gaz-System to supply DN 1,000 pipe for the construction of the 55km stage 5 of Baltic Pipe. Deliveries will take place from 1 November 2020 to 30 April 2021.