Maghreb Steel posts better results in Q3 2020
Morocco’s sole flat steel producer Maghreb Steel managed to post stronger sales figures for Q3 2020 amid a gradual recovery of the market after tough lockdown.
The company increased both revenue and sales volumes over the reported period, but this upturn did not fully offset the slump in previous one, resulting in weaker on-year numbers for nine months of 2020.
During July-September, Maghreb Steel sold 103,000 t of flat steel products, indicating a 94% surge quarter-on-quarter and 17% increase year-on-year, according to the official statement. Such impressive upturn is explained by market recovery after the pandemic shock, as Q2 was really challenging for Moroccan steel producers amid the imposition of the state of emergency and shutdown of many consumers.
Firmer sales translated into a 14% on-year upturn in revenues to MAD 764 million ($84.1 million; $1 = MAD 9.0826). Galloping increase of flat steel prices in the global market contributed to the result.
Although Q3 brought some positive news for the steelmaker, it was not enough to offset weak performance of January-September 2020. The sale volumes and revenues dropped by 12% and 13% on annualised base, to 245,000 t and more than MAD 1.8 billion ($202.9 million) respectively.
“While the market is returning to usual state of things step-by-step, the recovery is rather slow and requires more time, especially in view of a new wave of COVID-19,” a local source told.