voestalpine: write offs at voestalpine Texas and Tubulars, EBITDA forecast for the BY 2020/21 more optimistic

The Management Board of voestalpine AG announced the need for a non-recurring write off at voestalpine Texas during the current business year 2020/21 due to impairment of assets. The reevaluation is primarily a consequence of the COVID-19 pandemic and necessary adjustments to this company’s expected mid-term results. The direct reduction plant which went into full scale operation in 2017 produces around two million tons of sponge iron (HBI) annually, a sophisticated pre-material used in steel production by customers around the world. Since 2019, the HBI plant has been particularly severely affected by the high prices for iron ore, and low prices for scrap. The global iron ore price is primarily influenced by growing demand from China, while in the rest of the world the scrap price remains low. This decoupling is leading to price ratios for iron ore and scrap of a scale hitherto unknown, which in turn is impacting HBI demand and prices. Unscheduled write offs for the HBI plant have already been made, in the BY 2019/20.

Read more at voestalpine: write offs at voestalpine Texas and Tubulars, EBITDA forecast for the BY 2020/21 more optimistic.

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