The sales markets in Europe show recovery from the COVID-19 impact in 2021. Global demand for building materials, such as steel and zinc, and transportation services are high, and prices have sharply risen.
Order intake and sales volumes fluctuate depending on the Business Unit. Steep increases in steel and zinc prices are causing decreased sales volumes but are also pushing competitors to drop prices to keep factories filled.
Market developments in the zinc markets in 2021 are showing a gradual upward trend with a little peak mid-October, just after the acquisition of Prestia. At the beginning of the financial year, the zinc price was US$2,724 per ton and after then steadily increased to US$3,600 per ton at the end of the financial year. In the first two months of 2022, the zinc price continued to rise.
The rising zinc price has an opposite effect on the figures of our Business Units Rotocoat, Prestia and Rezinal. On the one hand, the rising zinc price has repercussions on the cost of sales due to the higher purchase price for zinc, while on the other hand, sales are also affected by the rising zinc price. The zinc price on the London Metal Exchange (LME) is monitored closely, following a fixed purchase strategy.