Finnish stainless steel maker Outokumpu warned of further revenue cuts in the future after profits fell by a third in the second quarter.
The reason for the decline in profits at Outokumpu was called "an influx of cheap Asian imports."
The company's underlying profit fell 33 percent from a year ago to € 91 million (roughly $ 101 million), Outokumpu said Thursday, roughly in line with analysts' expectations of € 93.4 million.
“In Europe, we are still struggling with cheap Asian imports, despite permanent guarantees that came into effect in February,” said CEO Roland Baan. "The penetration rate of imports has returned to 30 percent, and the beginning of a new quota period from July 1 has already led to a further jump in imports."
According to Baan, the steel industry is in constant dialogue with the European Commission, which introduced new restrictions on steel imports in early 2019 to improve the effectiveness of guarantees.
“On the other hand, US imports remained relatively low. However, due to the continuing decline in distributor inventories, we are not seeing significant volume growth in the short term in the Americas, ”added Baan.
