Spanish stainless steel producer Acerinox has posted record results in its financial report issued for the first half of 2007. For the period in question, Acerinox registered sales revenues of €4.313 billion, up from €2.436 billion for the same period last year; the producer's net profits reached €411.5 million, up over four-fold from €101.53 million for H1 2006; while EBITA was €755 million, compared to €196.75 million for the first six months of 2006.
In January-June 2007, the company's total stainless steel production amounted to 1,314,379 mt, an increase of 4.6 percent on the corresponding period of the previous year. This figure included 1,150,700 mt of hot rolled production and 788,700 mt of cold rolled.
Regarding the market situation, Acerinox comments, "The market for stainless steel was characterized by strength of demand in the first half of 2007, which allowed the transfer to customers of the increases in raw material costs, mainly nickel, the price of which has tripled since the start of 2006."
Acerinox's note goes on to add that the strong correction seen in nickel prices on the London Metal Exchange from mid-May onwards caused a slowdown in the purchases of stockists, who are awaiting a new stabilization of nickel prices and, therefore, of alloy surcharges. Acerinox expects the correction in nickel prices to have a positive impact in the middle term by reducing stainless prices and thus stimulating demand.