Stainless steel will profit in 2014

In the 2013 fiscal year, Oryx Stainless has been able to maintain its global market position despite market-related low turnovers and tonnage. The low expectations of the previous financial year were undercut in the process. The group's customers report on the most difficult environment for stainless steel in years.

In a market environment which was extremely weak worldwide, characterised by excess production capacities and weakening economic growth in China, as well as low nickel prices, the main component of stainless steel, the turnover of Oryx Stainless developed in step with that of European customers. Thus, the company achieved turnovers in the amount of EUR 430 million in 2013.
For the 2014 fiscal year, Oryx Stainless, together with leading analysts, is assuming a 5 per cent worldwide growth in demand. After several years of consolidation, Oryx Stainless assumes that even Europe and the USA are going to make substantial contributions to growth again. But Asia will continue to be the engine of growth. For the further course of the year, Oryx Stainless is expecting at least stable nickel prices. Against the background of the export ban, however, and the difficulty of making a prognosis is clearly in the upper price range so that, if the ban continues to be strictly implemented in Indonesia, even considerably higher nickel prices are realistic in the course of the year.
“Oryx Stainless and the stainless steel industry outside of China will benefit from the demand dynamics in Asia and the growth in Europe and the USA in 2014. The subsidisation of production in China with regards to raw materials has come to an end for the time being due to the development in Indonesia. As nickel prices rise, an increasing demand dynamics for stainless steel and for the raw materials required for production is going to develop as well because stocks in trade are at an historic low. Nevertheless, conservative hedging remains the only alternative because, as prices rise, speculative investors will increasingly enter into the commodities markets again, which will increase price fluctuations,” says Roland Mauss, chief financial officer of Oryx Stainless.
For the current fiscal year, Oryx Stainless expects a turnover of about EUR 600 million and thus a return to the growth trajectory seen in past years.


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