On August 1, the world's largest independent steel trader, London-based Stemcor, issued its financial results for the first half of 2011, stating that the recovery from the deep recession of 2008/2009 continued during the first half of 2011, but growth in the industrialized countries of the West was disappointing and there were some signs of the recovery faltering.
According to the financial results, Stemcor's turnover increased 31 percent to £3.12 billion ($ 5.12 billion) for the first half of 2011 compared to £2.44 billion ($4 billion) for the first half of 2010. Operating profit of £66 million ($108 million) in the first half compares with £61 million ($100 million) in the first half of 2010, increasing 11 percent.
Stemcor also pointed out that tonnage invoiced increased from 7.9 million mt to 9.1 million mt, with a 15 percent year-on-year increase in the first quarter of 2011. Stemcor's pre-tax profit figure of £51.6 million ($84.7 million) stayed relatively stable compared with £51 million in H1 2010, despite strong underlying
trading.
Stemcor chairman Ralph Oppenheimer added that the company's raw materials
trading business performed strongly while the stockholding and service centre businesses all performed well with the exception of Stemcor Special Steels. Stemcor is confident that this business, which serves the oil industry, will begin to trade profitably in the second half of the year. During the half year Stemcor acquired two service centres in Portugal and the
UK, the latter being a joint venture with a major Chinese producer. Subsequently, on July 13 this year the
UK-based company completed the purchase of a Belgian plate stockholding business.