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

Nucor reports improved earnings, sales, and operating rates
Nucor reported a sharp sequential rebound in the second quarter, buoyed by improved pricing and strong shipments. But the steelmaker is bracing for a modest slowdown in the months ahead.

Cliffs confirms Cleveland furnace restart, Dearborn furnace idling
Cleveland-Cliffs is idling blast furnace, BOF shop, and continuous caster functions at its Dearborn plant, but downstream operations will remain unaffected, the company confirmed. Cliffs said its pickling line tandeom cold mill (PLTCM) and its extra wide automotive-grade galvanizing line for exposed parts will continue operations at the Dearborn, Michigan-based facility.

Nucor spot HR list price unchanged at $900/ton
Nucor maintained its weekly list price for hot-rolled (HR) coil flat this week, following a price cut the previous week.

Despite trade chaos, Barry Schneider upbeat on SDI, steel
With 30 years of experience at Steel Dynamics, Barry Schneider reflects on the company and the state of the steel industry.

Algoma Steel seeks CAD$500M in operational support
Algoma Steel applied to Canada’s federal Large Enterprise Tariff Loan (LETL) program for $500 million to support its long-term operations.