Global refractories producer RHI Magnesita, a company made up of Brazil's Magnesita and Austria-based RHI, said revenues at its steel division in Q2 fell 16.9 percent, year-over-year, to EUR 372 million.
As for the first half of the year (H1), steel revenues dropped 22.4 percent, year-over-year, to EUR 820 million. The company attributed weaker steel revenues in both Q2 and H1 to the impact Covid-19 had on customer demand. RHI Magnesita said steel revenues in South America in H1 reached EUR 129 million, 23.5 percent down, year-on-year.
“This decline in revenue was worse than steel production activity in the region, which according to World Steel Association data declined by 19.9 percent over the same period. This difference was a function of product mix between Electric Arc Furnace (EAF) and integrated steel plants customers, some market share losses as customers diversified suppliers, and currency effects,” the company said in a statement.
RHI Magnesita said it reported a profit before tax of EUR 70 million in H1 this year, down from EUR 165 million in H1 2019.