Swiss Steel reduced sales by 19% y/y in the first half of 2023

The company's sales revenue decreased by 13.4% year-on-year

The Swiss steel producer Swiss Steel in the first half of 2023 reduced the volume of steel sales by 19.3% y/y – to 756,000 tons. It is stated in the company’s report.

In this period, the company’s sales revenue decreased by 13.4% compared to the same period in 2022 – to €1.85 billion, despite lower costs due to the drop in energy and raw material prices.

Adjusted EBITDA in the first half of 2023 decreased to €70 million against €171 million in January-June 2023 (-59.1% y/y)

The average price of sold steel increased by more than 7% y/y – up to €2.4 thousand per ton compared to the same period last year. According to Swiss Steel, this was driven by an improved product mix with a higher proportion of stainless steel and higher alloy allowances.

Swiss Steel Group’s financial performance in the first half of 2023 was affected by a difficult geopolitical and economic environment. There are a number of factors at stake, including a slowdown in the global economy and rising interest rates to combat inflation. The most important consumer segments – the automotive industry and engineering – continued to suffer from global distortions.

The group expects that market volatility will continue this year. The company adheres to guidelines for adjusted EBITDA for 2023 in the range of €160-200 million.

Swiss Steel Group is one of the world’s leading suppliers in the sector of special rolled products.

As GMK Center reported earlier, the EU steel market can be opened for import in 2024, according to Salzgitter. Currently, pressure from Asian countries has increased on the European market.