5th May 2023 08:53
(Alliance News) - RHI Magnesita NV on Friday reported lower refractory sales volumes in the first quarter of 2023, in line with management expectations and overall market demand.
The Vienna-based supplier of refractory products said refractory sales volumes in the quarter ended on March 31 were 8% lower year-on-year. It said steel and cement demand outside of India and China softened "due to a slowdown in construction activity", whilst demand in the Industrial Projects segment remained strong.
RHI Magnesita said prices of magnesite-based raw materials remained at relatively low levels throughout the quarter.
Chief Executive Officer Stefan Borgas said: "RHI Magnesita benefited from resilient pricing in the first quarter as we fulfilled orders placed in [the fourth quarter of 2022] during the peak inflationary period. Our improved refractory-margin performance benefits from the investments we have made to rationalize our network and leaves us well placed to meet expectations for the year."
Looking ahead, the company said order book trends suggest the potential for a gradual recovery in steel customer demand in the short term. However, it warned that the outlook for end markets and customer volumes remains uncertain and a significant recovery in volumes is not expected.
It added that it is confident to achieve its current guidance for 2023.
Shares were effectively flat, marginally falling to 2,235.60 pence each on Friday morning in London.
By Xindi Wei, Alliance News reporter
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