Buenos Aires, Argentina-based flat-rolled steelmaker Siderar announced Tuesday that its Q1 2011 net profit rose 82 percent year-over-year to US$147 million due to a "holding result" of US$89 million.
According to the company, the holding result stems from the impact of Siderar's inventory of increased costs, primarily those for raw materials. Additionally, Siderar anticipates that the costs of production will continue to grow in Q2, and if higher costs cannot be translated to finished steel prices, then Siderar's net income will continue to be negatively impacted.
Siderar is a subsidiary of Ternium S.A. and is Argentina's largest steel company with nine manufacturing locations all over the country.