Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/7ae0f28ad09c40ee688f02da5e111808.jpg)
SSAB Americas Shines for SSAB in Q1
Written by Sandy Williams
April 24, 2016
SSAB Americas reported sales of SEK 2,428 million ($297.5 million) for first quarter 2016 up from 2,321 in Q4. Shipments increased 9 percent from Q4 to 475,000 tonnes. Operating profit, or EBIT, was SEK 55 million ($6.7 million) compared to a loss of SEK 100 mill in in Q4 and profit of SEK 296 million a year ago.
The Americas segment saw lower average plate prices in first quarter but prices are currently improving. Import of plate continued at high levels during first quarter. A new trade case on plate imports was announced April 8 which is expected to benefit demand and pricing.
Demand from steel service centers increased as inventories normalized. Steel demand for wind towers was favorable while railcar demand was slow.
SSAB posted an operating loss of SEK 190 million ($23.3 million), an improvement from a loss of SEK 802 million in fourth quarter. The improvement, said SSAB, was mostly driven by higher volumes, lower maintenance costs and positive synergy impacts, but was negatively impacted by lower average prices. Sales for the quarter increased to SEK 12,964 million ($1.58 billion).
The cost savings program is continuing with a new target reduction of SEK 2.8 billion, an increase of SEK 300 million on an annual basis, during 2017.
In the SSAB outlook remarks for Q2 2016, North American real demand for plate is expected to be unchanged and demand in Europe stable. Trade cases are expected to have a positive impact on import volumes to North American and Europe. SSAB shipments and prices in Q2 are anticipated to increase somewhat from Q1.
During the earnings conference call, chief financial officer Hakan Folin noted that U.S. steel service centers were destocking the whole of 2015.
“They are now replenishing, and basically, what they sell out to their customers they are buying from us to make sure that they keep — are stable on their inventory levels. They are on a fairly low inventory level, but we don’t expect that they will restock, but we don’t see that they will destock further either.
Folin expects recent price hikes in the U.S. to hold but margin pressure will still be present due to increasing scrap prices.
Planned maintenance outages at SSAB Americas for 2016 include a mini-outage at the Mobile facility in Q2 and a larger one in Montpelier in Q4.
SSAB Americas includes production facilities in Montpelier, Iowa and Mobile, Alabama. Both facilities operate scrap based electric arc furnaces, with capacities of 1.2 million tonnes and 1.3 million tonnes, respectively. (Note: Exchange rate conversion based on 1 SEK = 0.12 US $)
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/04/sandy-williams.jpeg)
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/stelco.png)
Steel Summit 2024: Stelco CEO reflects on strategy, growth, and sale to Cleveland-Cliffs
In a candid fireside chat with SMU Senior Analyst/Editor David Schollert, Stelco’s CEO Alan Kestenbaum opened up about Stelco’s pending sale to Cliffs, his business strategy, outlook for the industry, and plans for the future. The chat took place on Tuesday, Aug. 24, at the 2024 SMU Steel Summit in Atlanta.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/AISI.png)
AISI: US steel shipments unchanged in July vs. June, down on-year
Domestic steel shipments remained nearly flat in July month over month but fell from a year earlier.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/white_house.png)
Media reports: Biden could block USS sale on national security concerns
President Joe Biden could block the $15-billion sale of U.S. Steel to Japan's Nippon Steel by citing national security concerns That’s according to reporting in the Washington Post and the Financial Times that was later picked up by the New York Times as well as in wire services.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/US_Steel.png)
USS threatens to cut ‘thousands’ of jobs, move HQ if Nippon sale blocked
U.S. Steel could slash thousands of jobs, shift away from integrated steelmaking, and move its headquarters out of Pittsburgh if its acquisition by Nippon Steel isn’t completed, the company’s top executive said. “We want elected leaders and other key decision makers to recognize the benefits of the deal was well as the unavoidable consequences if the deal fails,” company President and CEO David Burritt said in a statement on Wednesday.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/SSAB.png)
CRU: SSAB to expand Mobile plate mill
SSAB plans to spend $12 million to boost production capacity at its electric-arc furnace (EAF) plate mill in Mobile, Ala. The Sweden-based steelmaker will do that by expanding the existing furnace there. Shot blast equipment will also be upgraded. The expanded capacity is expected to come online late next year. The mill currently has an […]