Finland-based stainless steel producer Outokumpu has announced its financial results for the second quarter of the current year, indicating that stainless steel demand continued to recover and base prices increased moderately in both Europe and the US in the second quarter. Import levels into Europe were exceptionally high, close to 30 percent, reflecting the turbulence in the Asian stainless steel market, according to Outokumpu CEO Mike Seitovirta.
In the second quarter, Outokumpu recorded a net loss of €58 million, narrowing compared to a net loss of €248 million in the first quarter this year and €250 million in the second quarter last year, while the company's sales for the second quarter this year increased slightly by 0.86 percent year on year to €1.75 billion.
Outokumpu's stainless steel deliveries in the second quarter of the current year rose by 5.5 percent year on year to 675,000 mt. Capacity utilization rates of the Outokumpu production facilities have improved, reflecting the closure in December 2013 of the Krefeld melt shop in Germany and the progress in the ramp-up at the Calvert facility in the US. In the second quarter, Outokumpu's average utilization rate in melting and cold rolling remained on par with the first quarter at 85 percent and 75 percent respectively.
For the third quarter of 2014, Outokumpu estimates that overall stainless steel demand and pricing environment will remain relatively healthy, with a seasonal slowdown in the European market. The company expects lower delivery volumes, some improvement in stainless steel base prices and continued progress in the cost-efficiency initiatives in the third quarter of the current year.
