Spanish-headquartered stainless producer Acerinox saw its production turn down year-on-year in 2019. The decline was the result of reduced consumption in Europe and the United States, as well as global overcapacity, Kallanish learns from the company’s annual results.

“The strength of the North American market and its low import levels make the group somewhat optimistic. Uncertainty remains in the European market, although activity is improving,” Acerinox says. “We believe that the European authorities will impose further anti-dumping and anti-subsidy measures against Taiwan, China and Indonesia. Asian markets continue to be affected by overcapacity and low prices, the company adds. Acerinox estimates that its Ebitda in the first quarter of 2020 will be in line with that on Q4 2019. The stainless producer, however, cannot confirm the impact that coronavirus may have on steel sector.

During 2019, the company`s cold rolled coil output fell by -8.3% to 1,607,000 tonnes. Crude steel and hot rolled steel production were 2.23 million tonnes and 1.95mt respectively, down by -8.6% and -8.0% y-o-y. Hot-rolled long products output, meanwhile, fell by -13.8% compared to the previous year to 219,557t.

Acerinox net sales were -5.1% lower y-o-y at €4.75 billion ($5.24 billion), while the group`s net profits reached €176 million in 2019, down -25.6% from €237m in 2018. The company`s Ebitda was €402m in 2019 or -16.3% lower on-year, Acerinox adds.