Steel Mills
SSAB Americas Improve Results in Q2
Written by Sandy Williams
July 23, 2016
SSAB Americas results in improve in second quarter due to higher volumes and prices. Sales were SEK 2.8 billion ($323 million) compared to SEK 2.4 billion ($277 million) in first quarter. Shipments improved 11 percent to 526,000 tonnes from 475,000 tonnes in Q1.
The company reports good demand from steel service centers and the wind tower segment during the quarter.
SSAB expects demand for heavy plate in North America to be somewhat lower due to normal seasonal slowdown in third quarter. A planned maintenance outage at SSAB America’s Montpelier facility has been moved from the beginning of fourth quarter to the end of third quarter to take advantage of a seasonal weakness.
In its outlook for key customer segments, SSAB expects railcar production in the US to continue a steady decline along with a slowing in the truck industry. Automotive production is expected to remain high. Construction machinery and oil related segments are expected to remain slow. Mining equipment may have a slight pick-up due to replacement investments. Demand for wind energy products is expected to remain high.
Service center inventories in the U.S. are perceived as normal while firms remain in a wait-and-see mode.
Consolidated results for SSAB were SEK 14.4 billion ($1.6 billion). EBITDA was SEK 1.6 billion ($185 million), up from SEK 1.2 billion in Q2 2015 and SEK 744 million in first quarter 2016.
SSAB attributed improved results to higher shipments and prices, positive synergy, and better capacity utilization.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Cliffs unveils new hydrogen-powered stainless line in Ohio
CEO Lourenco Goncalves, flanked by state leaders and union reps, touted the project as proof that US manufacturing is not only alive, but also advancing.
Cliffs idles Steelton, Riverdale, and Conshohocken operations
Cliffs has idled facilities in Riverdale, Ill., and Conshohocken and Steelton, Pa.
Radius loss narrows, volumes climb in ‘healthy’ West Coast market
Stronger steel demand in the Western US, rising scrap flows, and improved rolling mill utilization drove sequential gains for Portland, Ore.-based Radius Recycling.
AISI: Raw steel production backs off multi-year high
US raw steel output edged lower last week after hitting a multi-year high in mid-June, according to the American Iron and Steel Institute (AISI).
Private equity firm Atlas Holdings to acquire Evraz North America
Atlas Holdings said it has signed a definitive agreement to acquire Evraz North America (Evraz NA). The Greenwich, Conn.-based private equity firm said it expects the deal for the Chicago-based steelmaker to close in the second quarter of 2025 subject to various closing condition.