Steel Mills

SSAB Americas Reports Lower Volumes and Prices in Q2

July 20, 2019

SSAB Americas saw a drop in sales from first to second quarter due to lower volumes and prices. Sales of SEK 4.5 billion ($485 million) were down 6 percent from Q1 but were 13 percent higher than a year ago. The company reported good demand in several segments but cautious buying and destocking at service centers.

“We saw fairly decent demand from end users [in the Americas], but we also saw that Steel Service Centers were quite cautious,” said SSAB Group CEO Martin Lindqvist. “For us, deliveries to Steel Service Centers in Americas was roughly 50,000 ton lower than Q1, and Q1 was not strong either.”

SSAB shipments declined 5 percent from the first quarter to 475,000 metric tons (524,000 short tons). Crude steel production increased 3 percent from first quarter as did rolling production.

SSABAmShipments

SSAB Americas operating profit of SEK 872 million ($93 million) was down SEK 84 million ($9 million) from first quarter, primarily due to lower pricing.

Demand for heavy plate is expected to be relatively good in North America during the third quarter. Steel shipments in the third quarter are expected to be similar to second quarter but lower pricing is anticipated.

About SSAB Americas

SSAB Americas’ steel mills are located in Mobile, Alabama and Montpelier, Iowa and have a combined annual production capacity of 2.4 million metric tons, producing heavy plate and coil. Both mills utilize a scrap-based, electric arc furnace (EAF) method to produce steel.

(1 SEK = 0.11 USD)