5 steel millls report losses of 74 million euros

The main players in the Romanian steel industry reported in H1, 2009, significant losses, 5 of the steel plants reported losses that totalled 309.8 million Lei (Romanian currency), or 74 million euros, writes on Monday, daily Ziarul Financiar.

Virtually, things have gone from an extreme to another, after in 2009, most of the processors registered record profits, followed by spectacular rises in the price of steel.

The plants owned by the Indians from Acelor/Mittal, the leader of the steel market in Romania, in Roman and Iasi, reported in the first five years a total loss of 143.4 million Lei, or 39.1 million euros, over six times higher than in the same period last year.

The Russians from Mechel, the highest domestic player, in the market of concrete iron, registered in their main two plants, in Romania, in Targoviste and Campia Turzii, total losses worth 154.3 million lei, or 42 million euros, in the first half of 2009.

The plant owned by the Russians from TMK, in Slatina, also made loss in H1, with a negative result of 12.2 million Le i, or 3.3 million euros, compared with net revenues of almost ten million Lei, or 2.7 million euros.

„The losses of the plants are related to the auto industry and the building one, which reported similar loss, they exported a big share of their production. It is no surprise that they have high losses.

The iron and steel industry is more difficult to adjust. Why did the Romanian state bother so much with Sidex ?, rhetorically asked Florin Ilie, the manager of the department of capital markets of ING Bank.

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