Outokumpu: Jumps amid ferrochrome benchmark price hike
22/03/2021 08:59
** Shares in Finnish stainless steel maker Outokumpu
OUT1V.HE jump 7% hitting their highest level in more than two
years
** Inderes analyst Petri Gostowski says the contract price
of ferrochrome, an alloy of chromium and iron used for stainless
steel production, in Europe is set to rise significantly in Q2
after its production fell last week
** On Friday Merafe Resources raised its benchmark
ferrochrome price for Q2 by 32.8% to $1.56 per pound
urn:newsml:reuters.com:*:nFWN2LH0J0
** The brokerage says following the price hike it is going
to update its outlook for Outokumpu's ferrochrome segment,
seeing a significant upward pressure for estimates
** Outokumpu's ferrochrome unit, which runs its own chrome
mine in the municipality of Kemi, accounted for 7.3% of the
company's revenue in 2020, according to Refinitiv data
** Afarak AFAGR.HE , another Finnish steel company which
also produces ferrochrome, is up 2.5%
** Outokumpu shares are up 42% year to date
((boleslaw.lasocki@tr.com))