What is now imminent, he promises to clarify during the second quarter of this year.
– I do not want to set the details of the second quarter, but I find it hard to see that not a great deal will be of staff, says Moström.
It is also true permanent staff.
– I find it hard to see that we can avoid it, he said.
Brak loss for the full year in 2015 of 7.2 billion consisted mainly of a giant write-down of SEK 7 billion in the third quarter .
the collapse in iron ore pressed down while LKAB’s sales during the year by SEK 5.4 billion. It weighed only partly offset by the positive impact of the weakened Swedish krona SEK 2.5 billion.
Moström, who took in the fall, see in front of several years of hard downward pressure on prices. Among other things, when the new competitive production will be in Brazil and Australia.
– The consequence is that we will have very low iron ore prices, at least for a few years, he said.
the price of iron ore was down to a low of $ 38 per tonne in the fourth quarter. It has recovered slightly, to just over $ 40 per tonne since. But LKAB’s management expects that prices will not rise over the range of 40-50 dollars per tonne in the next five years.
External assessors share the gloomy vision.
– We sees iron ore market will be very tough for the foreseeable future, says Ola Södermark, analyst at Swedbank.
China is expected to continue reduce its steel production. But at the same time, the three global giants of iron ore – Rio Tinto, BHP Billiton and Vale – have invested heavily in increasing production in low-cost mines.
Even Per Ahl, president of the industry association Svemin, expect a continued oversupply of iron ore.
He added, however, LKAB despite the weak market has “a decent position.” The reason is that most of the production consists of iron ore pellets and only a smaller part of the “sinter fines” which are a simpler type of raw material.
– LKAB get almost twice as good prices for their products competitors. It is incredibly important to their business.
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