Acerinox Stainless Steel Production Rose in The Third Quarter
Oct 31, 2024
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Acerinox stainless steel production rose in the third quarter
On October 29, Spanish stainless steel producer Acerinox's crude steel production increased in July-September compared to the second quarter.
The increase was due to the restart of the Acerinox Europa plant in Los Barrios, Spain, after a five-month suspension due to a workers' strike. The group signed a new collective bargaining agreement with employees in July.
Acerinox's stainless steel production also increased year-on-year due to a low base in 2023, when the European industry experienced a severe downturn in demand.
However, despite the rise in deliveries, revenues from the group's stainless steel business fell both year-on-year and quarter-on-quarter, as challenging market conditions in Europe and the US pushed down prices for finished stainless steel.
"Final stainless steel prices fell due to lower alloy surcharges, although prices in the United States remained stable," the company said.
The group's stainless steel shipments in July-September totaled 473,000 tons, up 11.85% year on year and close to the performance in the third quarter of 2022. However, as the Europa plant restarted and accelerated production in the second quarter, deliveries increased by 23.2% relative to the second quarter.
Traders told Argus that the group was mainly dealing with a backlog of orders during the strike, but actual demand for the producer remained weak in July-September. The group's shipments in January-September fell 7 per cent year-on-year to 1.297 million tonnes, reflecting the current weakness in the industry.
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