South African aluminum rolling mill Hulamin is banking on a healthy order book and increasing prices for aluminum on a global scale to support better financial performance in H2 2021.
During the second quarter, the company lost about 4,000mt of production due to political unrest in July. It also lost about 2,000mt in sales to a cyber attack on the Port of Durban. However, it has recaptured sales and will deliver the goods in August billing. The company plans to ramp up capacity utilization to more than 105,000mt at its rolling mill in H2 2020. Hulamin increased its scrap usage by 8pc in the first half, Mark Grounder, the firm’s chief financial officer noted.
In H1 2021, the company produced 96,000mt of aluminum products, up 43pc from 67,000mt in the same period of 2020, despite production disruptions. Richard Jacob, chief executive officer, Hulamin, said that its US sales have been strong, especially for the beverage can market. It also noted that auto body sheet sales are recovering, albeit at a slower pace than anticipated.
During the first six months of 2021, Hulamin saw a 50pc increase in revenue to ZAR5.5bn ($381mn), compared with ZAR3.7bn in H1 2020. The company’s EBIT rose 166pc to ZAR79mn against a loss of ZAR119mn in the prior-year period. It realized a 41pc increase in average LME Aluminium prices.