Finland-based stainless steel producer Outokumpu has announced its financial results for the third quarter of the current year, registering a net loss of €77 million, declining from a net loss of €238 million in the third quarter of the previous year, while the company's sales for the third quarter this year increased by 11.8 percent year on year to €1.8 billion.
Outokumpu's stainless steel deliveries in the third quarter of the current year rose by 1.4 percent year on year to 644,000 mt. Overall, the capacity utilization rates of Outokumpu's production facilities have improved after the closure of the Krefeld melt shop in December 2013 and progress in the Calvert ramp-up. In the third quarter, Outokumpu's average utilization rate was around 70 percent in both melting and cold rolling and therefore lower than in the second quarter, reflecting maintenance breaks and seasonally slower markets.
For the fourth quarter of 2014, Outokumpu estimates that the overall stainless steel operating environment will be lackluster. This is driven by the recent decline in the nickel price, which is negatively impacting demand in the distributor sector as well as the general economic slowdown especially in Europe and China. The company expects lower delivery volumes and relatively stable stainless steel base prices in the fourth quarter.