Steel Mills
U.S. Steel Narrows Loss in Q3
Written by Sandy Williams
September 19, 2020
U.S. Steel expects another loss in the third quarter of 2020, but not as deep as in the second quarter. The steelmaker anticipates a $100 million adjusted EBITDA loss for the quarter compared to a loss of $264 million in Q2. The flat rolled segment is expected to be negative, but “significantly better” than Q2.
Order book and lead times have improved in the flat-rolled segment allowing the restart of three blast furnaces at U.S. Steel that were idled due to impacts from COVID-19. Two blast furnaces will remain idled through the end of this year.
The tubular market appears to have bottomed, but is showing few signs of improvement. Tubular earnings are expected to be similar to second quarter.
Market conditions have improved in Europe and order book and lead times bode well for continued recovery. An improvement for third-quarter results is expected.
“Improving market conditions experienced in June and July have accelerated through August and September. Strengthening steel fundamentals and our ability to respond quickly to increasing customer demand are expected to result in significantly improved adjusted EBITDA in the third quarter,” commented U.S. Steel President and CEO David Burritt. “We have grown confident in the recovery that is under way in North America and Europe.”
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
USS/Nippon deal: Who will have the happiest holidays?
Will Santa bring gifts for the leadership, employees, and shareholders of U.S. Steel and Nippon Steel, and lumps of coal for USW leadership and politicians opposed to the deal?
‘Orderly liquidation’ of AHMSA assets begins
A trustee has formally taken over AHMSA and begun the liquidation process of the bankrupt Mexican steelmaker.
Nippon buying stake in Canadian iron ore project
Nippon Steel and a Japanese trading company have entered an agreement to buy a 49% interest in a Champion Iron ore project in Canada.
USS anticipates Q4 loss on weak demand, BR2 start-up
Amid a challenging pricing and demand environment, and with the ongoing ramp-up of the Big River 2 mill, USS is anticipating a loss for the fourth quarter.
Nucor blames steel mills segment for depressed Q4 guidance
Nucor cited decreased volumes and prices in it steel mills segment as the key driver of its lower guidance for the fourth quarter.