Oryx Stainless Announces Sales Growth

Stainless steel trading company Oryx Stainless, based in Muelheim an der Ruhr and Dordrecht, Netherlands, has increased its sales by 6.25 percent to about €850 million (US$1.125 billion) in the 2011 financial year.

In total, the company traded about 470,000 metric tons of stainless steel scrap as a high-quality secondary raw material, an increase of 5 percent compared with the previous year, according to a company statement.

The company says volatile nickel prices during the financial year caused Oryx Stainless to further optimize its hedging strategy.

The market was also characterized by the continuing growing demand for stainless steel, Oryx says. Toward that end the, company refers to statistics from the International Stainless Steel Forum (ISSF) indicating that global production of stainless steel increased last year by 3.3 percent to a new record of 32.1 million metric tons, with China a driving force behind the growth.

Oryx says as a result of the rapidly increasing importance of Asia to the stainless-steel industry, the company decided in 2011 to set up additional bases in the region to supplement its existing locations in Germany and the Netherlands. In conjunction with an established partner, Oryx Stainless has been operationally active in Asia since February 2011. Additional property was acquired in the fourth quarter of 2011 to help the company extend its activities in Asia.

The company says it hopes to implement a policy of short routes by supplying stainless steel scrap from the Asian/Pacific area to consumers in the region. It is also Oryx Stainless’ intention to exchange capacities between the European and Asian markets.

“We want to broaden our position in the global trade with stainless steel scrap as a source of raw material in a steadily increasing market,” explains Michael Pawlowski, Oryx Stainless executive director.

Oryx Stainless was established in 1990 and holds 6 percent of the global stainless steel market, the company says. Oryx also says Europe remains the focus of activities, with two-thirds of its sales being generated in the region, and the remainder achieved in Asia.

“We are assuming that with our product, the Oryx Stainless Blend, and good market networking, we will be able to benefit disproportionately this financial year from the globally increasing demand for stainless steel,” says Roland Mauss, CFO at Oryx Stainless.

The company says more than 500,000 metric tons of scrap stainless steel are expected to be turned over in the 2012 financial year and that Oryx plans to grow by between 5 and 6 percent in the medium term.