Spanish steel producer Acerinox is optimistic about its Q2 earnings based on current, positive performance within the stainless-steel consumer markets and its status of inventories.
The company noted its order books grew by 80pc in Q1 2021 compared to Q1 2020 and are up 40pc from two years ago, on progressively improved activity since the end of 2020. Healthy order volumes are evident in the alloys sector, indicating strong performance. Recovery is likely to occur from June for Acerinox subsidiary VDM Metals, which was purchased in 2020.
In light of improved market environments, the company anticipates its second-quarter EBITDA to surpass Q1 levels. Results from Q1 2021 show an upturn in activity from November-December 2020 and beyond with rising output, increased margins, strong cash generation, and cost management reform that quickly adjusted with demand.
The steelmaker recorded a 12pc increase in consolidated melt shop production totaling 668,454mt in Q1 2021 compared to 599,843mt in Q1 2020. The company’s stainless division melt shop output rose by 9pc to 650,000mt in Q1 2021 against 599,000 in Q1 2020.
Acerinox’s cold-rolling production remained flat at 394,000mt in Q1 2021 compared to 393,000mt in Q1 2020 while output for hot-rolling long products rose by 11pc to 63,000mt compared to 57,000mt in the same period.
The Spanish steelmaker recorded a 24pc increase in net sales to €1.44bn ($1.75bn) in Q1 2021 compared to €1.16bn in Q1 2020. The company’s net profit surged by 177pc to €78mn against €28mn in the same period and EBITDA rose by 90pc to €161mn from €85mn.