SMM News: according to the results released by (Acerinox), a Spanish multinational stainless steel producer, in the first quarter of 2019, its stainless steel crude steel production fell by about 6 per cent compared with the same period last year and increased by about 22 per cent to 627920 tons from the previous month. The production of hot rolled stainless steel flat wood decreased by about 8 per cent compared with the same period last year and increased by about 16 per cent to 531074 tons from the previous month. Production of flat cold rolled stainless steel decreased by about 8 per cent compared with the same period last year and increased by about 12 per cent to 422361 tons from the previous month, while production of long stainless steel (hot rolled) increased by nearly 2 per cent and 10 per cent to 66000 tons, respectively.
Net sales fell about 4.1 per cent year-on-year and rose about 5.5 per cent to EUR 1.202 billion, gross operating profit (EBITDA) fell about 23.5 per cent year-on-year and rose about 56 per cent to EUR 90 million, operating profit (EBIT) fell about 40.1 per cent year-on-year and rose about 175.9 per cent to EUR 45 million, net profit fell about 43.9 per cent year-on-year and rose about 103.3 per cent to EUR 33 million. In addition to the strong performance of (NAS), a North American stainless steel company, the contribution of its other plants declined.
On the market side, after a very weak fourth quarter of 2018, all markets increased in activity in the first quarter of 2019, and the alloy surcharge recovered from March after falling for seven months. Inventory levels in the European Union and the United States have fallen to normal levels. The final safeguards implemented in Europe since February have reduced import pressure, but the base price is still at a historically low level. Sales in the United States are growing and the base price is stable. Oversupply in Asia has kept prices very low.
Arcelenox expects its gross operating profit in the second quarter to be higher than in the first quarter.