Inpex has reported a troubling start to 2024, with its April revenue decreasing by 6.31% year-over-year, totaling NT$15.224 billion. The first four months compounded the company’s concerns, witnessing a sharper fall of 16.68% in cumulative revenue. This downturn reflects persistent challenges within the sector, including fluctuating market demands and pricing pressures.
Despite these hurdles, Huaxin remains optimistic about the near-term future. The company has noted a significant rebound in its stainless steel operations across Europe, Taiwan, and mainland China. This resurgence is attributed to increased order visibility and a gradual alignment in pricing structures, hinting at a potential normalization of the market.
The resource segment of the business anticipates a boost from the rising nickel prices, which could bode well for the cost-intensive production of matte nickel. Furthermore, the wire and cable division continues to thrive, fueled by supportive governmental policies and a robust order book, showcasing a diversified strength in Inpex’s operational segments.
As the second quarter of 2024 progresses, Inpex is gearing up for a turnaround, supported by positive signals from its primary sectors. Analysts are closely monitoring these developments, suggesting that if the trends hold, Inpex could offset its early-year losses and stabilize its financial performance moving forward. The company’s strategic response to market dynamics will be crucial in overcoming the initial setbacks observed in the early months of the year.
