Finland-based steelmaker Ruukki has announced that it has revised its guidance for 2012. Instead of growing about five percent as estimated earlier, net sales are now estimated to remain at the same level as the previous year, due to weaker orders.
According to Ruukki's statement, the company's outlook for 2012 has changed in respect of the steel business. Based on the market outlook at the end of the second quarter, average selling prices of steel products were expected to remain at the same level or to show a moderate rise. A fall in the global market prices of raw materials has put downward pressure also on the prices of steel products and decreased demand.
The delay of around one quarter before lower raw material prices are reflected in Ruukki's production costs and the decline in the market prices of steel products mean that the company's profitability will be below earlier forecasts.