Afarak Group PLC (LON:AFRK) confirmed lower activity levels in South Africa amidst the pandemic as it reported production numbers for its first quarter.
Group production amounted to some 37,728 tonnes in the three months ended March 31, marking a year-on-year decline of 50.6%.
Specialist alloy production totalled 25,838 tonnes, down 4.9% versus Q1 2020, whilst FerroAlloy production was down 75% at 11,890 tonnes.
The company noted that amid decreased steel market activity market prices are low and demand is poor, nonetheless, there was some encouragement looking ahead.
For its processing business, Afarak noted: “The retracted demand of low carbon ferrochrome during 2020 started to improve during the first quarter of 2021, however production was still lower when compared to prior year at EWW plant in Germany.”
It also noted that in the processing business the prior year comparison also included volumes from a now discontinued operation at the Mogale plants.
In February, whilst reporting full year results for 2020, the company said it is hopeful that the progress of vaccination programmes will help spark a recovery in demand for stainless steel and hence chrome.
The Helsinki- based alloys specialist reported 39% lower revenues in the end year to end-December 2020 at €59.8mln, with lower volumes and prices affecting the second half.
A profit from discontinued operations enabled the group to post a second-half profit, but the continuing businesses saw a deficit during the half of €13.3mln and €17.9mln for the year overall.