Ohio-based GrafTech International cited sustained improvements in the global steel market that drove a strong performance for the company’s key metrics in Q2 2021.
The graphite electrode producer and supplier for electric arc furnace (EAF) steelmaking recorded gradual increases in sales and production volumes throughout the quarter.
The manufacturer foresees continued recovery in the industry for the rest of 2021 and is confident this will positively impact its business in the long term.
The company boosted production in Q2 to converge with rising consumer demand led by increasing global steel market capacity utilization rates, along with expanding graphite electrode markets.
Market prices for graphite electrode shipments in H2 2021 increased during Q2, and the producer believes it is well-positioned to see further progress in its non-long-term agreements’ (LTA) pricing in H2 2021 and into 2022 on positive market conditions.
In Jan-Jun 2021, the company’s production volumes increased 21pc to 80,000mt versus 66,000mt in the same 2020 period. GrafTech’s production volume expanded 33pc to 44,000mt in Q2 2021 compared to 33,000mt in Q2 2020.
The EAF supplier’s sales volumes increased 23pc to 80,000mt in Jan-Jun 2021 against 65,000mt in the same 2020 period. Sales volumes rose 38.7pc to 43,000mt in Q2 2021 versus 31,000mt in Q2 2020.
GrafTech’s net sales rose 6pc to $635mn in Jan-Jun 2021, compared to $599mn in the same 2020 period. Net sales increased 18pc to $331mn in Q2 2021 against $281mn in Q2 2020.
The company saw a 1pc rise in adjusted net income to $214mn in Jan-Jun 2021 compared to $212mn in the same 2020 period. Net income increased 19pc to $114mn in Q2 2021 versus $96mn in Q2 2020.
The producer’s adjusted EBITDA fell 4.6pc to $315mn in Jan-Jun 2021 against $330mn in the same 2020 period. However, adjusted EBITDA rose 5.8pc to $160mn in Q2 2021 over $151mn recorded in Q2 2020.