Steel Mills
ArcelorMittal Narrows Loss in Q1
Written by Sandy Williams
May 11, 2014
ArcelorMittal losses narrowed in the first quarter of 2014. The company posted a net loss of $200 million in the first quarter compared to $345 million in Q1 2013. First quarter EBITDA was $1.75 billion, an increase of 23 percent from Q1 2013. Sales of $19.8 billion were below Q4 and almost par with Q1 2013. Total steel shipments increased by 2.4 percent y/y worldwide, totaling 21 million tonnes. Total crude steel production was 23 million tonnes.
ArcelorMittal changed its reporting methods to reflect a geographic focus. As a result, US, Canada and Mexico flat, long, and tubular operations are combined as NAFTA results. NAFTA sales were down slightly from the previous quarter, at $4.9 billion compared to 4.99 billion.
Steel margins expanded in all segments except NAFTA which saw EBITDA per tonne fall 25 percent from extreme winter conditions and spikes in energy costs. Weather impact charges totaled $315 million, $200 million of which was realized in Q1and $115 million that will impact Q2 earnings. Supply side disruptions due to inclement weather and logistic problems resulted in NAFTA steel shipments decreasing 2 percent to 5.6 million tonnes. A 1.7 percent decline in flat shipment volumes was partially offset by a 1.8 percent increase in long product volumes. Crude steel production was 6.25 million tonnes.
NAFTA sales dropped 1.3 percent from Q4, totaling $4.9 billion. Average steel selling prices for flat products were up 1.8 percent and 0.7 percent for long products.
Construction of a heavy gauge Galvanizing line #6 at ArcelorMittal Dofasco is expected to optimize costs and increase galvanized product shipments by 3 million tonnes per year. The line will be completed in 2015.
A reline of the #7 furnace in Indiana Harbor is scheduled for June and will last approximately two months. Shipments are not expected to be affected.
Iron ore shipments at market price decreased to 9.3 million tonnes from 10.3 million tonnes the previous quarter due to weather related issues. On a year over year basis ore shipments increased 28 percent due to higher shipments from Canada. Iron ore production in Q1 was 14.8 million tonnes, down 3.6 percent from the previous quarter due to severe winter conditions at the Canadian mines.
Iron ore capacity is expected to reach 84 million tonnes by the end of 2015 with another 11 million tonnes identified that could stretch capacity to 95 million tonnes.
The Arctic ore mine in Baffinland on the St Mary River is making good progress and is expected to begin shipments in December 2015 with a production capacity of 3.5 million tons per year.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Algoma to shut down line in Ontario ahead of EAF start
The 106” Mill was part of Algoma's plate and strip combination facility.
Nippon trial vs. US government to begin early next month: Report
Nippon Steel’s litigation against the US government is set to begin in early February, according to a report by Japan’s Kyodo News Agency. Nippon will file its opening brief on Feb. 3. And both parties will conclude their claims by March 17 in the US Court of Appeals for the District of Columbia Circuit, Kyodo […]
Nucor carbon targets certified by GSCC
Nucor’s “ambitious” carbon targets by the end of the decade and beyond have been certified by the Global Steel Climate Council (GSCC). The Charlotte, N.C.-based steelmaker used a base year of 2023 for its science-based emissions targets (SBET). It set an SBET of 0.975 metric tons (mt) of CO2 emissions per mt of hot-rolled steel […]
SSAB halts talks with Feds on Miss. green steel plant
The Department of Energy's Industrial Demonstrations Program page states that it is no longer moving forward with SSAB.
Cleveland-Cliffs CEO seeks ‘American solution’ for U.S. Steel
He said a new entity would operate under the U.S. Steel name and would retain its Pittsburgh headquarters.