Finland-based stainless steel producer Outokumpu has announced its financial results for the third quarter of the current year, registering a net loss of €115 million, increasing from a net loss of €77 million in the same quarter of the previous year, while the company's sales in the given quarter decreased by 17.34 percent year on year to €1.48 billion.
Outokumpu's stainless steel deliveries in the third quarter decreased by 10 percent year on year to 570,000 mt.
Outokumpu estimates that its fourth quarter delivery volumes will be at similar levels to the third quarter volumes. With current prices, the net impact of raw material-related inventory and metal derivative gains/losses on profitability is expected to be a decline of approximately €40-50 million.
Outokumpu said it expects the current subdued situation in the stainless steel market to continue for the rest of the year, even though end-user demand outside the oil and gas sector is expected to remain healthy. Stock levels among distributors are expected to gradually decrease, but no significant rebound is expected in buying activity in the short term with the nickel price remaining low and distributors typically curtailing their buying and managing their inventories towards the end of the current year. Import pressure in both Europe and the US is likely to persist.