Editor: Adam Zhang
The refractories maker benefited last year from a growing steel sector as well as increased demand for high quality materials in China.
Rising steel production and increased demand for higher quality products in China boosted global demand for refractories last year, Vesuvius said
Demand for refractories materials such as bauxite, magnesite and graphite grew thanks to a 5.3% increase in global steel production, the UK-based refractories maker said on March 1.
Although Chinese exports fell, the company benefited from increased demand for higher-grade refractory materials, reflecting attempts by producers to increase the quality of their steel output.
Demand from the foundry sector, which buys casting sand and bentonite, among other materials, was also stronger - revenues from Vesuvius’ foundry segment rose 17% year on year in 2017.
The company noted "positive momentum in the majority of foundry end markets, with particular strength in heavy trucks and a recovery in mining equipment as well as construction and agricultural equipment after several years of weakness".
The rise in demand outweighed an increase in costs of the raw materials used in refractories in 2017
"Whilst the price of magnesite, the largest contributor to raw material price inflation in 2017, has now stabilized, the price[s] of other raw materials such as bauxite, silicon carbide and zirconia are still on an upward trend," Vesuvius said.
"As a result, the process of price adjustment will continue into 2018, until realized cost increases have been fully recovered," it added.
Full-year trading profit of £165.5 million for 2017 was up 24% from the previous year on revenues of £1.68 billion, up 20% year on year, Vesuvius reported on March 1.