Steel Mills
Imports to Impair AK Steel Earnings in Q1
Written by Sandy Williams
March 20, 2015
Unfairly traded imports are negatively impacting AK Steel earnings in the first quarter of 2015. AK Steel expects a net loss of $0.23 to $0.28 per diluted share in the first quarter due to low carbon steel shipment and spot prices as a result of “unexpectedly” high levels of imports.
Shipments are expected to decrease by 14 percent from Q4 for an approximate total of 1.73 million tons. Demand from the automotive market remains strong.
Average selling price of $995 per ton in Q1 is up about one percent from Q4 due to a higher percentage of value-added steel shipments, however, carbon steel spot prices have declined throughout first quarter due to increased imports.
AK Steel attributes the strength of the U.S dollar and “excess global steelmaking capacity and continued challenging global economic conditions” to the rise in steel imports into the U.S. “Imports of flat rolled carbon steel products increased by nearly 60% in 2014, and have averaged more than one million tons per month in January and February of 2015,” noted AK Steel in the guidance statement.
AK Steel expects the benefits from lower raw material and energy costs to be “significantly out-weighed” by lower shipments and selling prices in the first quarter.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
AISI: Raw steel production drops to multi-month low
After being historically strong for more than four months, US raw steel production fell for a second week.
U.S. Steel sues Algoma over iron pellet shipments
U.S. Steel is suing Algoma over the Canadian flat-rolled producer's rejection of iron pellet shipments, arguing it has breached its contract.
August US mill shipments slip but still higher than last year
The American Iron and Steel Institute reported a decline in the monthly shipments of US mills from July to August.
TransPod, Algoma, Supreme Steel linkup anchors Canadian steel in high-speed transit build
The three Canadian companies have announced a strategic partnership to support the development of an ultra-high-speed transit line from Edmonton to Calgary.
Metallus, USW agree to tentative four-year labor deal
Metallus and the United Steelworkers (USW) have agreed to a tentative four-year labor contract.