Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/8d6a80ec31482bce048cf6bd03ee38cd.jpg)
SSAB Reports Rough Quarter
Written by Sandy Williams
January 28, 2020
SSAB Americas posted a loss of $23 million (-222 million SEK) for the fourth quarter of 2019 due to lower realized steel prices and maintenance costs associated with a planned outage in Mobile, Ala.
Heavy plate demand was good in the first half of the year, but weakened in the fourth quarter due to inventory destocking as prices fell. Sales dropped 19 percent from the third quarter and 25 percent from a year ago. Lower demand was noted from heavy transportation and construction machinery.
Crude steel production declined 10 percent from Q3 and 9.0 percent from Q4 2018. Rolling production dropped 9.0 percent month-over-month and 10 percent year-over year. Declines were attributed to the Mobile maintenance.
SSAB expects demand for heavy plate in North America to be stable in the first quarter of 2020. With the maintenance outage at Mobile out of the way, shipments are expected to pick up in Q1. Prices are expected to be generally unchanged from the fourth quarter.
Group Results
Swedish SSAB Group saw sales slip 10 percent from third to fourth quarter to 16.97 billion SEK ($1.77 billion U.S.). The company posted a net loss of $129.4 million (-1.24 billion SEK) due to negative results in all business segments except Ruukki Construction. Crude steel production and rolling production were down 15 percent and 13 percent, respectively, from Q3. Steel shipments totaled 1.48 million metric tons.
“In Europe, demand was somewhat weaker throughout the year,” said SSAB. “During the first half of the year, it was primarily the automotive segment that slowed down, but later demand also decreased in other segments, including heavy transport. During the fourth quarter, demand was marked by destocking both by end customers and distributors.”
![](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 […]