Steel Mills

Stelco Forecasts Strong Earnings

Written by Tim Triplett


Pointing to improving market conditions and favorable pricing trends, Canada’s Stelco forecasts Q1 earnings of $60-70 million and Q2 earnings of $120-150 million.

The integrated steel producer expects first-quarter 2018 shipments to be 3-5 percent higher than fourth-quarter 2017. In late Q1 2018, the company expanded its distribution capabilities by adding 200 rail cars to its distribution fleet and increased its shipping capacity through its LEW dock project. Those enhancements are expected to improve shipments in the second quarter. Capital projects remain largely on schedule and on budget, the company said.

Stelco’s forecast is based on several key assumptions: improved margins from higher steel prices, increases in shipments due to expanded distribution capabilities, a gradual shift in product mix to higher-value steels, new customer development, and the company’s ability to continue accessing the U.S. market without any adverse trade restrictions, including possible NAFTA changes.

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