Acerinox reports profitable Q1

Spain-based stainless steel and specialty alloys producer Acerinox S.A. says its first-quarter 2023 results include earnings before interest, taxes, depreciation and amortization (EBITDA) of 226 million euros ($249 million), two-and-a-half times higher than EBITDA from the prior quarter.

CEO Bernardo Velázquez says he expects “a slightly higher EBITDA” figure in the second quarter of this year “thanks to a strong North American stainless steel market and a robust high-performance alloys sector.”

In North America, Acerinox owns the North American Stainless (NAS) mill in Ghent, Kentucky, and two specialty alloy melt shops in the United States with vacuum induction furnaces and electroslag and arc remelt furnaces. The specialty alloy plants, part of the Acerinox VDM Metals subsidiary, are in Nevada and New Jersey.

Acerinox says it experienced a return to normal demand in the first quarter of 2023 compared to the last quarter of 2022. That translated to a 36 percent increase in stainless steel production compared with the final quarter of last year.

In January, Acerinox announced its intention to increase production capacity at the NAS mill in Kentucky by 200,000 metric tons per year, representing a 20 percent boost in capacity. The facility is likely the largest consumer of stainless steel scrap in the U.S.