Destocking over but restocking yet to happen: ThyssenKrupp

Factiva: "erman flat products maker ThyssenKrupp Steel believes inventories at European traders, service centres and many end-customers are at very low levels still, according to ThyssenKrupp Group’s chief financial officer Alan Hippe. “The destocking is at an end, but the restocking has not happened yet, so that is still something in the pipeline which makes us positive,” he said in a recent conference call"

here is a mixed picture across customer industries and product groups, Hippe commented in the call monitored by Steel Business Briefing. “Some groups are moving, some groups are not moving: when you look at yellow goods, mechanical engineering and heavy plate, these areas are still suffering from high inventories and relatively weak consumption,” he said. On the other hand, “when you look at auto and tinplate markets, these markets are positive, and some service centres are already very busy,” Hippe added.

ThyssenKrupp’s crude steel output (including its share in HKM) increased by 70% quarter on quarter in July-September 2009 to 2.6m tonnes, although year-on-year the figure was still down by 27%. In its full fiscal year October 2008 to September 2009, crude steel production was at a “historically low level” of 9.2m t. Also in full year 2008/2009, the steel division’s sales fell by 31% to €9.9bn, and the division posted a loss of €486m.