Outokumpu Shares Fall As Loss Worsens; Primary Indian Nickel Falls

While we don’t usually report on a company’s shares, “Outokumpu fell to a record low in Helsinki trading on a wider-than-expected loss,” reports Bloomberg.

“Outokumpu has slumped more than 80 percent in five years as European steelmakers struggle with too many furnaces and imports from Asia amid declining local demand. The company forecast its fourth-quarter underlying earnings before interest and taxes will be at about the same level or “slightly” worse compared with the third quarter.”

“The company’s operating cash flow reached 124 million euros in the third quarter, compared with a 160 million-euro negative figure in the previous quarter. This was ‘a clear positive’ driven by working capital reduction in results otherwise ‘unsatisfactory,’ Chief Executive Officer Mika Seitovirta said in a statement.”

“Outokumpu seeks a 300 million-euro reduction in net working capital by the end of 2014 through measures including inventory cutbacks. The company also targets 450 million euros in annual savings by 2017 and said last month it will cut 1,000 additional jobs and close a melt shop in Bochum, Germany next year, two years earlier than planned.”

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The Indian nickel cash price fell 0.2 percent on Thursday, October 31, making it the day’s biggest mover. On the LME, the nickel spot price rose 0.2 percent to $14,550 per metric ton. After a 0.1 percent increase, the 3-month price of nickel finished the day on the LME at $14,600 per metric ton.

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Chinese stainless steel prices were mixed for the day. The price of Chinese ferro-chrome held steady. For the fifth consecutive day, the price of Chinese ferro-moly held flat.

The price of Chinese primary nickel increased 0.2 percent. The price of Chinese 316 stainless coil continues to hover for the fifth day in a row. The price of Chinese 304 stainless coil saw little movement. The price of Chinese 316 stainless steel scrap remained essentially flat. The price of Chinese 304 stainless steel scrap saw essentially no change for the fifth day in a row.