Steel Mills

U.S. Steel: Q3 Earnings Resetting Record Books

Written by David Schollaert

September 16, 2021

U.S. Steel expects its third-quarter earnings to be one for the record books, exceeding even the record-breaking results of the prior quarter.

US SteelThe news comes as both Nucor and Steel Dynamics Inc. (SDI), two of the Pittsburgh-based steelmaker’s domestic competitors, also predicted record-setting third-quarter earnings this week.

U.S. Steel forecasts third-quarter earnings of roughly $2 billion, exceeding the historic $1.3 billion second-quarter total.

David Burritt, U.S. Steel’s president and CEO, said the company’s “best days are ahead,” adding that he expects “the third quarter to be a quarter of records for U.S. Steel.”

The anticipated results are thanks to sustained demand and rising steel selling prices, the company said. The flat-rolled, minimill and European segments are all projected to set new record earnings for the third quarter.

U.S. Steels remains “bullish that market fundamentals will support a stronger for longer steel market.” And that has positioned U.S. Steel to accelerate the pace of its deleveraging, Burritt said.

Aside from the debt incurred by the acquisition of Big River Steel, the company has reduced its debt by approximate $2.7 billion, aiming to reduce it by another $1 billion by mid-2022.

By David Schollaert, David@SteelMarketUpdate.com

David Schollaert

David Schollaert is a senior analyst for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. Based in CRU’s Pittsburgh office, David can be reached at david@steelmarketupdate.com or 724-720-1008.

Read more from David Schollaert

Latest in Steel Mills

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.