The Chilean iron ore and steel producer Grupo CAP has posted a net loss of $311.94 million for Q2 2024, against a net loss of $168,14 million in Q2 2023.
Under a comparative basis, net sales declined by 12.0 percent to $607.58 million, the gross profit declined by 61.9 percent to $148.49 million, and the EBITDA increased by 68.2 percent to $213.8 million.
In volume, iron ore production declined by 11 percent to 3.844 million mt, the steel production at the Huachipato steel plant declined by 32 percent to 128,000 mt, while the processing of steel products in the steel solutions division declined by 20 percent to 57,000mt.
The negative results of the CAP Group derive from the poor performance of its steel production area, affected by low sales prices, for their turn reflecting the competition fromimports of Chinese steel products at alleged dumping prices.
As a result of this scenario, the company decided to end steel production at its Huachipato plant.
In a statement, CAP announced that the end of the steel production will result in a cash impact of $120 million to $140 million over the next 12 months and a negative accounting impact to earnings of $320 million to $350 million due to a restructuring provision.