CAP reports Q3 2012 net loss of $5.2m

Chile’s Compañía de Acero del Pacífico (CAP) has reported a net loss of $5.17 million for the third quarter of 2012, as a consequence of lower iron ore prices and the weakness in the global steel market, as well as increased local taxes.

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

The loss compares with a net profit of $205.6 million a year earlier, CAP said in its third-quarter earnings report.

CAP’s wholly owned steel subsidiary, Compañía Siderúrgica Huachipato (CSH), sold 264,735 tonnes between July and September, down by 1% year-on-year.

The average sales price declined by 9.5%, from $891.87 per tonne to $807.24 per tonne.

“The international steel market continues to be weak, but the favourable economic conditions in Chile will maintain steel demand at good levels,” the CAP report said.

Sales at Novacero, the group’s steel processing division, fell by 5.5% year-on-year in the third quarter, totalling 95,000 tonnes.

Its average sales prices dropped by 7.4% to $1,146.85 per tonne.

Iron ore sales by CAP’s 75%-owned mining subsidiary Compañía Minera del Pacífico (CMP) declined by 27.9% in the third quarter compared with the corresponding period last year, reaching only 2.53 million tonnes.

This decrease was due to a brief slowdown in iron ore spot sales, as well as a delay in the docking of carriers at Chilean ports, according to CAP.

Average iron ore prices fell by 40.5% year-on-year in the third quarter to $100.15 per tonne, in response to pricing adjustments in the global market.

“Iron ore prices have started to recover, but haven’t reached early-2012 levels yet,” CAP said.

The company noted, however, that current market conditions in China – CMP’s major client – allowed the group to be optimistic about the start-up of its iron ore expansion projects in 2013, such as Valle del Huasco and Cerro Negro Norte.

Cerro Negro Norte is a 4 million-tpy greenfield iron ore operation, while Valle del Huasco’s iron ore capacity is expected to be increased by 2 million tpy.

What to read next
Chromite prices rose further in the two weeks to Tuesday May 31 on support from cost pressures and logistical issues in South Africa
UG2/MG chrome ore prices experienced major declines in the week to Tuesday July 12, dropping by $15 per tonne week on week, as the market saw the beginnings of a break in the continuing stalemate of recent weeks
The European charge and high-carbon ferro-chrome benchmark for the third quarter of 2022 has slumped by 16.7% from the previous quarter’s settlement to $1.80 per lb
Executives at major flat-rolled steel producers in the United States discussed three common themes during their companies’ earnings calls for the second quarter of 2022, sharing views on a potential recession, affects from recent government policy changes and trends in steel raw materials
Following a consultation period and market feedback, Fastmarkets will switch its Houston ferrous scrap price series to a consumer buying assessment on January 1, 2023, from its current methodology as a dealer selling assessment.
Austrian aluminium producer AMAG and German automotive manufacturer Audi have developed a recycled aluminium material for vehicle wheels to be put into series production, it was announced on Wednesday, August 3.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.