Outokumpu has given the following outlook

The economic uncertainty in Europe has increased resulting in shorter visibility for future stainless steel demand with underlying demand expected to be flat or slightly softer. Normal seasonality and the declining nickel price have had an adverse effect on distributors buying behavior. Lead times for standard grades continue to be normal at 6 to 8 weeks and distributor inventories are estimated to be at or below normal levels.

Mainly impacted by normal seasonality, Outokumpu's average base prices for stainless steel in the third quarter are expected to be slightly lower than in the second quarter. As a result of the slowdown in demand during the European holiday season and annual maintenance breaks at Group mills, Outokumpu's third quarter external delivery volumes (stainless and ferrochrome) are expected to be clearly lower than in the second quarter. On the other hand, compared to the second quarter, the Group's product and geographic mix in the third quarter is expected to improve. The production cost increase in the second quarter is expected to be partly reversed in the third quarter.

Outokumpu's underlying operational result in the third quarter is therefore expected to be approximately at the same level or slightly weaker than in the second quarter. At current metal prices, marginal raw material related inventory losses are expected as a result of the decline in the nickel price. Outokumpu's operating result in the third quarter could be impacted by small non recurring items associated with the Inoxum transaction and the Group's ongoing cost cutting programs.

Source - Outokumpu

(www.steelguru.com)