“Steel and zinc prices fell in 2019.

Changes in the market prices for both steel and zinc had a negative impact on the result. After an initial increase, the zinc price fell from US$ 2,425 at the outset of 2019 to US$ 2,300 at the end of the financial year. The zinc price has fallen even further in the first two months of 2020. The development of the zinc price has a direct inverse effect on the figures of the Business Units Surface treatment and Zinc recycling. On the one hand, the downward trend in zinc prices has an impact on the cost of sales as a result of the lower purchase price for zinc; on the other hand, sales are affected by the zinc price. The zinc price on the London Metal Exchange (LME) is monitored closely and, with the exception of unusual fluctuations in the price, there is a fixed purchasing strategy.

LME zinc price per tonne in 2019

The steel price in 2019 followed almost a stable downward trend. Uncertainties in the global steel market – such as import duties, overproduction, declining economic growth in China and declining car sales – continue. Uncertainty regarding the steel price has a direct financial impact on the Steel and Steel Processing and Business Unit Grating technology. Falling purchase prices would seem to be positive for the buying market, but increasing price competition is putting additional pressure on margins.

Development of steel market price - quarto plate and hot-rolled coils

The relatively low steel and zinc prices had an adverse effect on the ROTO results as at the end of the 2019 financial year. The lower prices had a negative effect on revenue. In conjunction with non-recurring items in the 2019 financial year, the total negative effect on the result after tax was € 3.5 million. These non-recurring items meant that the results, with the exception of those of the Business Unit Surface treatment , were lower than budgeted: the total result after tax for 2019 was € 3.6 million (2018: € 7.6 million).

“Steel and zinc prices fell in 2019.

Changes in the market prices for both steel and zinc had a negative impact on the result. After an initial increase, the zinc price fell from US$ 2,425 at the outset of 2019 to US$ 2,300 at the end of the financial year. The zinc price has fallen even further in the first two months of 2020. The development of the zinc price has a direct inverse effect on the figures of the Business Units Surface treatment and Zinc recycling. On the one hand, the downward trend in zinc prices has an impact on the cost of sales as a result of the lower purchase price for zinc; on the other hand, sales are affected by the zinc price. The zinc price on the London Metal Exchange (LME) is monitored closely and, with the exception of unusual fluctuations in the price, there is a fixed purchasing strategy.

LME zinc price per tonne in 2019

The steel price in 2019 followed almost a stable downward trend. Uncertainties in the global steel market – such as import duties, overproduction, declining economic growth in China and declining car sales – continue. Uncertainty regarding the steel price has a direct financial impact on the Steel and Steel Processing and Business Unit Grating technology. Falling purchase prices would seem to be positive for the buying market, but increasing price competition is putting additional pressure on margins.

Development of steel market price - quarto plate and hot-rolled coils

The relatively low steel and zinc prices had an adverse effect on the ROTO results as at the end of the 2019 financial year. The lower prices had a negative effect on revenue. In conjunction with non-recurring items in the 2019 financial year, the total negative effect on the result after tax was € 3.5 million. These non-recurring items meant that the results, with the exception of those of the Business Unit Surface treatment, were lower than budgeted: the total result after tax for 2019 was € 3.6 million (2018: € 7.6 million).

“Steel and zinc prices fell in 2019.

Changes in the market prices for both steel and zinc had a negative impact on the result. After an initial increase, the zinc price fell from US$ 2,425 at the outset of 2019 to US$ 2,300 at the end of the financial year. The zinc price has fallen even further in the first two months of 2020. The development of the zinc price has a direct inverse effect on the figures of the Business Units Surface treatment and Zinc recycling. On the one hand, the downward trend in zinc prices has an impact on the cost of sales as a result of the lower purchase price for zinc; on the other hand, sales are affected by the zinc price. The zinc price on the London Metal Exchange (LME) is monitored closely and, with the exception of unusual fluctuations in the price, there is a fixed purchasing strategy.

LME zinc price per tonne in 2019

The steel price in 2019 followed almost a stable downward trend. Uncertainties in the global steel market – such as import duties, overproduction, declining economic growth in China and declining car sales – continue. Uncertainty regarding the steel price has a direct financial impact on the Steel and Steel Processing and Business Unit Grating technology. Falling purchase prices would seem to be positive for the buying market, but increasing price competition is putting additional pressure on margins.

Development of steel market price - quarto plate and hot-rolled coils

The relatively low steel and zinc prices had an adverse effect on the ROTO results as at the end of the 2019 financial year. The lower prices had a negative effect on revenue. In conjunction with non-recurring items in the 2019 financial year, the total negative effect on the result after tax was € 3.5 million. These non-recurring items meant that the results, with the exception of those of the Business Unit Surface treatment, were lower than budgeted: the total result after tax for 2019 was € 3.6 million (2018: € 7.6 million).