Finland-based stainless steel producer Outokumpu has announced its financial results for the second quarter of the current year, reporting a net loss of €20 million, narrowing down from a net loss of €62 million in the same quarter of the previous year, while the company's sales in the given quarter decreased by 18.6 percent year on year to €1.37 billion.
Outokumpu's stainless steel deliveries in the second quarter this year increased by two percent year on year to 629,000 mt.
According to Outokumpu, the third quarter market outlook is impacted by the typical seasonal decline in demand, particularly in Europe. In Europe, stock levels among distributors are currently at historical averages and the underlying demand in key sectors outside of oil and gas is expected to continue to be relatively healthy. In the Americas, while a drop in demand is expected in the third quarter, there are also a number of positive signs; stock levels among distributors are below historical average levels, the announced price increases are gaining traction, and the preliminary antidumping ruling is expected to curb unfair competition.
Outokumpu also stated that it expects sequentially flat delivery volumes for the third quarter. The company’s ferrochrome operations will be impacted by major maintenance work during the third quarter, partly offsetting the positive impact of higher ferrochrome prices. Outokumpu expects the pace of its efficiency improvements to continue and its underlying EBIT to turn positive in the third quarter.