Reuters reported that Spain's Acerinox, which produces more than 10% of the world's stainless steel, said that a forecasted market recovery has not occurred and is not expected until the first quarter of 2012.

Acerinox had expected that the third quarter would be the weakest of the year and was betting on a recovery in the fourth quarter. But the company signaled that the fourth quarter would continue difficult.

It said that "The strength and competitiveness of the group will finish the year with a good global result, although the market recovery expected for the fourth quarter will be delayed due to the troubled euro zone."

The company also said that demand and inventory levels make us think that the market will start to recover at the beginning of next year.

Acerinox's net profit in the first nine months of 2011 was up by 5.4% compared with the same period last year to EUR 103 million. However, only EUR 1 million of that profit came during the very weak third quarter.

The company's EBITDA rose 10% in the January to September 2011 period to EUR 316 million. But the third quarter results were the worst of the year at EUR 58 million as compared with EUR 74 million in the third quarter last year.

Acerinox has three plants, in Spain, the United States and in South Africa, and its biggest market is in North America. Despite a low level of inventories, European consumption of Acerinox's products has not revived. Uncertainty on the financial markets and imports from other countries has affected the volume of orders for the third and fourth quarters in Europe.

(Sourced from www.reuters.com)