Outokumpu says sees no relief from tough market

HELSINKI, March 2 (Reuters) - Finnish stainless steel maker Outokumpu (OUT1V.HE) said on Monday tough market conditions would last for a while but it was well placed to weather the storm.

"Although visibility into the future is poor, it seems likely that markets will remain difficult in both the short and medium term," Chief Executive Juha Rantanen said in the firm's annual report.

"I am confident that Outokumpu will perform relatively well even in these challenging conditions," Rantanen said, adding Outokumpu had a healthy balance sheet, a balanced debt maturity profile and good cash flow.

An Outokumpu spokeswoman declined to quantify "medium term". She said the firm was referring to the challenges of the global recession as well as, for example, new stainless capacity being built by rivals in China.

Outokumpu reported a deeper-than-expected fourth-quarter loss in February, and said it would make a "significant" operating loss for the January-March quarter due to the weak markets and inventory losses. It has not given a 2009 outlook.

(Reporting by Brett Young; Editing by David Cowell)