Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/b6eb9e37f060b41e2d9dba7ae79b9aad.jpg)
USS Swings to Q1 Profit on High Prices, Big River Contribution
Written by Michael Cowden
April 29, 2021
U.S. Steel swung to a profit in the first quarter on higher steel prices and strong results from electric-arc furnace (EAF) producer Big River Steel.
The Pittsburgh-based steelmaker recorded a $91-million profit in the first quarter of 2021 versus a $391-million loss in the same quarter of 2020 on revenue that jumped 33.1% to $3.66 billion.
“Our optimism in the strength of our business is clearly confirmed in our first-quarter performance,” U.S. Steel President and CEO David Burritt said in a statement released with earnings data.
All the company’s business units posted solid year-over-year improvement.
U.S. Steel’s flat-rolled segment recorded $146 million in earnings before interest and income taxes (EBIT) in the first quarter of this year after losing $35 million in the same quarter last year.
It’s European division – its steel mill in Košice, Slovakia – posted EBIT of $105 million in the first quarter of 2021 after losing $14 million in the year-ago quarter.
And the company’s tubular segment narrowed its EBIT loss to $29 million in the first quarter of 2021 from an EBIT loss of $48 million in the same quarter of 2020.
U.S. Steel closed the deal for its remaining stake in Big River Steel on Jan. 15. And the EAF steelmaker was fast out of the gate. It posted EBIT of $132 million in the first quarter.
Big River Steel also averaged higher selling prices than the rest of U.S. Steel’s flat-rolled division.
U.S. Steel’s flat-rolled division recorded average selling prices of $888 per ton in the first quarter of 2021, up 24.9% from $711 per ton in the first quarter of last year. Big River posted average selling prices of $967 per ton.
The company in addition saw steel shipments increase to 3.91 million tons in the first quarter of 2021, up 11.7% from 3.50 million tons in the same quarter of last year.
But while overall shipments were up, U.S. Steel’s flat-rolled segment, excluding Big River Steel, shipped fewer tons than last year.
U.S. Steel’s flat-rolled division shipped 2.33 million tons in the first quarter of this year, down 7.2% from 2.51 million tons in the first quarter of 2020.
By Michael Cowden, Michael@SteelMarketUpdate.com
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/02/SMU_MC_headshot-150x150.png)
Michael Cowden
Read more from Michael CowdenLatest 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 […]