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15 OCTOBER 2020 AL CIRCLE

Hulamin: South African Aluminium Group reports sales recovery in third quarter ended September

EDITED BY : RUPANKAR MAJUMDER 2MINS READ

On 14th October’20, the South African Aluminium Group Hulamin announced: “Third-quarter sales to end-September have improved, with order books in all its operations approaching normal levels.”

Hulamin sales rises in the third quarter

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The sales figure of the Group in the third quarter ended September rose to 45,000 tonnes, from 29,000 tonnes in the second quarter, as with Hulamin confirmed orders for beverage can products, heat-treated plate and extrusions were particularly healthy.

The COVID-19 pandemic has hit hard Hulamin in H1 and due to the high fixed-cost nature of the business, improved volumes was a vital factor to its return to profitability.

Hulamin’s sales had fallen 35% to 71,000 tonnes in H1 to end-June.

The Group also made public on 14th October that the preliminary findings of the US department of commerce antidumping case against common aluminium products had been released, with SA's duty set at 8.98%.

Since March’20, this has been an ongoing threat and had investigation had already weighed on its ability to sell these products in that country.

Hulamin sales rises in the third quarter

As per record, the US represented less than 15% of Hulamin Rolled Products’ total sales, a business which generated about 94% of the group's R3.7bn revenue to end-June.

Hulamin has said previously: “This affected largely low-margin products it was seeking alternative product and market opportunities due to this threat.”

aluminium

However, Hulamin has denied dumping and said previously it had appointed legal counsel.


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EDITED BY : RUPANKAR MAJUMDER 2MINS READ

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