SSAB expected dramatic increases in the price of raw materials.

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SSAB Svenskt Stål AB, the world’s largest supplier of high-tensile steel, on Tuesday posted a surprise first quarter pretax profit of 83 million kronor (($11.4 million), up from last year’s loss of 215 million. Analysts had forecast a 105-million-kronor loss, according to a Reuters poll.

The Swedish specialty steel maker now expects demand to increase and costs for raw materials, such as iron ore, to swell.

"Demand for steel is expected to remain positive during the second quarter," chief executive Olof Faxander said in a statement. "The mining industry is currently the strongest growth sector, providing a very strong inflow of orders."

Swelling raw material prices is mainly driven by unrelenting demand from China.

Last Updated (Tuesday, 04 May 2010 08:58)

 
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