Steel Mills

SSAB Americas Q1 results hit by lower plate prices, demand
Written by Laura Miller
April 24, 2024
Lower demand and prices for steel plate impacted SSAB Americas’ results in the first quarter, Swedish parent company SSAB said in its Q1’24 interim report.
Below are the results for the SSAB Americas segment:

In the report, SSAB highlighted the cautious approach of the American market in the quarter, particularly service centers, in response to lower prices. This caution significantly impacted shipments, with SSAB Americas experiencing an 8% year-on-year (y/y) drop in steel shipments to 437,000 metric tons (mt). Shipments were flat from the prior quarter.
SMU’s interactive pricing tool shows discrete plate prices declined 9% from an average of $1,471 per short ton (st) in Q1’23 to an average of $1,334/st in Q1’24.
The lower prices and reduced shipments hurt SSAB Americas’ Q1 revenues, which dropped 19% y/y to SEK 6,256 million (US$575 million). The Americas segment also posted a 46% y/y decline in adjusted Ebitda to SEK 1,473 million (US$135 million).
SSAB noted the ramp-up of SSAB Zero production in the US continues, with 21,000 mt shipped in Q1.
In the current quarter, SSAB Americas’ total shipments are expected to be somewhat higher than Q1, while realized prices will be somewhat lower, according to the company.
SSAB said its main market in Europe continues to be weak even as the market for high-strength steel is stable.
The company recently announced a major project at its Lulea works in Sweden to convert steelmaking from the blast furnace route to electric-arc furnaces (EAF). The investment comes with a price tag of €4.5 billion (US$4.8 billion).
Additionally, SSAB is considering expanding its US operations upon receipt of a significant grant from the US government.

Laura Miller
Read more from Laura MillerLatest in Steel Mills

Nippon could up investment in USS facilities to $7B: Report
It's the latest twist as the proxy battle heats up for Pittsburgh-based U.S. Steel.

Hybar expansion still on the table as Arkansas mill startup nears
As Hybar nears the completion of its $700-million rebar mill in Arkansas, the company said it is still “actively considering” building other steel facilities in the southern US.

Global steel production edges lower in February
February’s global raw steel output is tied with last December's for the fourth-lowest monthly production rate recorded over the past two years.

Fate of U.S. Steel hangs in the balance
The future of U.S. Steel remains unclear, but the proxy fight for control of the company is heating up. Shareholders will cast their votes on the company's future at the annual meeting in May.

Cliffs to idle Dearborn blast furnace, restart Cleveland furnace by July
Cleveland-Cliffs has decided to idle the steelmaking operations at its Dearborn Works in Michigan due to weak automotive demand.