PDF (10.9MB) - ThyssenKrupp AG
PDF (10.9MB) - ThyssenKrupp AG
PDF (10.9MB) - ThyssenKrupp AG
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Management report on the Group<br />
2.2 Management report on the Group Consolidated results of operations<br />
Nickel prices<br />
London Metal Exchange<br />
in 1,000 US dollars/metric ton<br />
30<br />
25<br />
20<br />
15<br />
10<br />
Oct<br />
2009<br />
Sept<br />
2011<br />
Capesize ships are too large for for the the Suez<br />
and Panama Canals and therefore have to to<br />
sail round Cape Horn and the the Cape of of Good<br />
Hope. Good Hope.<br />
68 | 69<br />
For our Stainless Global business area the alloying metals nickel, ferrochromium and ferromolybdenum are<br />
of foremost importance – as primary raw materials and as components of stainless steel scrap. The monthly<br />
average price of nickel on the London Metal Exchange was between 20,392 and 28,252 US dollars per ton.<br />
For ferrochromium from South Africa the quarterly price increased initially to 1.35 US dollars per pound<br />
(around 0.45 kg) before slipping to 1.20 US dollars. Quarterly prices for ferromolybdenum fluctuated<br />
between 36.57 and 43.45 US dollars per kilogram.<br />
The price of zinc – used to coat carbon steel – fluctuated enormously and averaged around 2,400 US dollars<br />
per ton, 7% above the prior-year average.<br />
Prices for manufactured products mirror raw material prices<br />
For manufactured products strongly dependent on raw material prices – e.g. steel components for<br />
machinery – the prior-year trend with in some cases steeply climbing prices continued. This effect was<br />
particularly drastic for products containing rare earths, for example permanent magnets in drives and<br />
electric motors used in the elevator industry.<br />
The materials market moved in short-term cycles. After coming under considerable pressure at the<br />
beginning of the fiscal year, prices rose sharply up to the middle of the year and subsequently softened<br />
slightly. The main factors behind this trend were raw material costs and the euro/US dollar exchange-rate<br />
effect, which at times benefited imports from Asia. In this situation our trading operators made short-term<br />
arrangements and consolidated and optimized purchasing volumes in some cases on a cross-country basis.<br />
The plant construction procurement markets stabilized considerably. As many of our suppliers had a full<br />
workload, delivery times increased but supplies remained secure. There was only a slight increase in prices<br />
for capital goods.<br />
Rise in freight costs halted<br />
For the maritime transport of bulk goods, increased cargo space became available. This was particularly<br />
true of capesize ships, the bulk carriers generally used for the shipment of iron ore and coal. For container<br />
shipments, too, more than enough ships were available. This halted the rise in freight rates and in some<br />
cases led to reductions. However shipment times increased, with ships often reducing speed to save fuel.<br />
Road haulage freight space in Germany remained tight due to the absence of capacities taken out in the<br />
crisis. Freight rates were therefore higher in particular for shipments at short notice. Rail capacities were in<br />
similarly short supply.