OMH a strong BUY, page-106

The end of the Polish ferro alloy industry.
Translated with google
Huta Łaziska expired three furnaces. "People are afraid for the future"

The management board of Huta Łaziska and the company Re Alloys operating on its territory decided to quit three furnaces for smelting alloys. The companies have announced that they are not planning any layoffs yet. However, employees are afraid for their future.

- The decision was dictated mainly by growing electricity prices, which are currently the highest in Poland in the European Union - representatives of Re Alloys informed a few days ago in an interview with the Polish Press Agency.
They also added that higher electricity prices were to be compensated by the amendment to the Excise Duty Act adopted six months ago, but there is still implementing the regulation.


"The trade war that started in March 2018 by Donald Trump is not insignificant for the industry . "Its effects became apparent with a few months delay, only at the end of 2018," says Stefan Dzienniak. The US president increased tariffs on steel and aluminum products entering the US market. This decision meant that 3.5 million tons of steel that did not enter the US remained in Europe.
Calculations show that in the first half of this year. EU metallurgy production fell by 2.5% Every year. In Poland it is as much as 8 percent, and preliminary estimates say that at the end of 2019 it may already be 18 percent. "Strong pressure on steel products with constant raw material prices and falling product prices have brought margins close to profitability. As a result, those who had the highest costs fall out of the market, "analyzes the president of HIPH."