Steel Mills
SSAB Americas Feels Chill of Winter
Written by Sandy Williams
April 26, 2014
SSAB Americas felt the effects of the winter freeze in the first quarter of 2014. Sales for the Americas segment were SEK 3,685 million ($559 million), down 2 percent from fourth quarter 2013 but 7 percent higher than Q1 2013. Higher prices and a favorable product mix were offset by lower volumes.
External steel shipments for the quarter totaled 604,000 tonnes (665,784 tons). High strength steel shipments fell 8 percent from fourth quarter to 145,000 tonnes (159,832) and were down 19 percent when compared to first quarter 2013. High strength steels accounted for 24 percent of SSAB Americas total shipments. Compared to fourth quarter 2013, crude steel production dropped 3 percent and steel production was 7 percent lower.
A maintenance outage at the Mobile, Ala., plant reduced production at the end of the quarter. Severe weather dampened demand as well as slowing transportation of raw and finished products. Demand from Automotive and Construction Machinery improved during the quarter while other segments weakened. SSAB remains optimistic for 2014 with North American operations expected to improve as the economy continues to pick up.
Swedish steel maker SSAB posted a net loss of SEK 49 million ($7.4 million), narrowing the loss from Q1 2013 of SEK 137 million ($20.7 million). Losses were attributed to weather related disruptions of North American production and demand as well as lower sales to Russia and Turkey. The Americas division of SSAB comprises 40 percent of the company’s sales.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
CRU: Tata Steel looks to shed 1,600 jobs in the Netherlands
The company said, “The challenging demand conditions in Europe driven by geopolitical developments, trade and supply chain disruptions and escalating energy costs have affected the operating costs and financial performance."
Reports: Federal funding for Cliffs’ project could be slashed
Elon Musk's DOGE is determining which Department of Energy grants to advance and which ones to terminate, according to several media outlets
Trump still against selling USS to Japanese firm: Report
Despite ordering a new review of Nippon Steel’s bid for U.S. Steel, President Trump said he is still against selling USS to a Japanese company, according to media reports.
Algoma looks to sell more steel in Canada in wake of Trump’s tariffs
The Canadian steelmaker said its absorbing higher tariffs as it moves forward.
Ancora abandons plan to take over leadership of USS
Investment firm Ancora Holdings Group has halted its play for U.S. Steel's board, citing Nippon Steel’s proposed bid for USS “gaining momentum.”