Steel Mills
Severstal NA Reports Utilization Rates Close to 100%
Written by Sandy Williams
August 29, 2013
Severstal NA revenue for Q2 rose to $953 million from $930 million in the first quarter 2013. Demand growth was led by U.S. automotive, construction and pipe and tube industries. First half 2013 revenue, however, fell to $1,883 million from $2,158 million in H1 2012—a 12.7 percent loss. Severstal reported a utilization rate of almost 100 percent compared to the average of 78 percent for the US steel industry, but lower prices impacted increased production gains. A decrease in EBITDA to $44 million was attributed to a cash settlement with a coking supplier, resulting in a $12 million charge.
For the company overall, Severstal reported a second quarter loss of $44 million compared to a net profit of $44 million in the first quarter. The loss was primarily due to $226 million foreign exchange loss (FX) in the second quarter. Excluding FX losses the company’s profit would be $182 million.
Revenue increased by 2.8 percent quarter over quarter to $3,414 million. Earnings improved due to higher sales volumes and cost control measures.
Severstal expects steel demand to remain strong for Q3 in both Russia and the USA with moderate pricing increases. The industry forecast over the medium to long term is expected to remain challenging.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
SDI to acquire remaining stake in New Process Steel
Steel Dynamics Inc. (SDI) announced that it has agreed to acquire the remaining 55% equity interest in New Process Steel.
North Star results improve despite buyer caution as tariffs drive prices higher
North Star BlueScope said it is optimistic that US tariffs will bolster selling prices and tighten the spread the Australia-based steel maker suffered in 2025.
AISI: Domestic steel production edges down
US raw steel production declined last week, according to the latest data released by the American Iron and Steel Institute (AISI).
Cliffs inks longer-term contracts with US automakers hedging tariff inflation: Report
Cleveland-Cliffs Inc. has reportedly signed "unusually long" fixed-price supply agreements with multiple US automakers.
USS, government officials give update on Clairton Coke Works incident
U.S. Steel, Allegheny County executive Sara Innamorato, and Pennsylvania Gov. Josh Shapiro clarified details from early reports about the Clairton Coke Works facility explosion just one day earlier.