The Spanish stainless steel producer Acerinox S.A. has said that in the second quarter of the current year the international financial crisis, a lack of confidence and the overcapacity in the sector continued to affect the stainless steel market. Although prices have stabilized, they remain at minimal levels. The downward trend in nickel, presaging even lower prices, has caused demand to dwindle in all markets. The traditional inventory replacement process has not taken place this year and inventory levels remain low across all markets, particularly in Europe and the United States.
Acerinox said that the European markets are affected by four factors; the financial situation, overcapacity, pressure from imports and the instability caused by the lengthy consolidation process. Acerinox hopes that the European Commission will decide on the future of the Italian plant of Terni before too long.
The North American market, Acerinox's main market, continues to outperform its European counterpart. Consumption in North America has increased slightly this year, consolidating the solid improvement reported in previous years. Prices have been affected by the international situation and by pressure from imports, coupled with the presence of Outokumpu's new integrated plant in Alabama.
In the second quarter of 2013, the company's hot rolled product output came to 484,800 metric tons, decreasing by 5,700 mt year on year, while its cold rolled product production totaled 380,600 mt, up 22,900 mt year on year.
In the first half, Acerinox' profit after tax amounted to €16.1 million, falling 60 percent compared to the corresponding period last year, while its net sales came to €2.07 billion, decreasing by 14.4 percent year on year.
