Steel Mills
Montpelier Outage Hurts SSAB Americas in Q3
Written by Sandy Williams
October 29, 2016
SSAB Americas, recorded a third quarter operating loss of SEK 73 million ($8.1 million) compared to a profit of SEK 162 million ($18 million) in Q2 2016. The loss was due mainly to the maintenance outage at Montpelier in the third quarter, higher variable costs, lower volumes and lower capacity utilization which was somewhat offset by higher prices. In comparison, profit in Q3 2015 was SEK 78 million ($8.7 million).
The maintenance outage at Montpelier resulted in direct charges of SEK 200 million ($22 million) in third quarter. SSAB Americas also booked a charge of SEK 209 million ($23 million) for settlement in an anti-trust lawsuit against several US steel producers.
Sales for the quarter were SEK 2.545 billion ($282 million), down 10 percent from Q2 2016 and 17 percent from Q3 2015. Demand was weaker in Q3, particularly from steel service centers but demand in the energy segment, driven by the wind power industry, remained good.
External shipments, totaling 421,000 tonnes, were down 20 percent sequentially and down 17 percent year-over-year. Crude steel production and rolling production were down 14 percent and 16 percent from second quarter, respectively, due to the Montpelier outage.
Said SSAB President and CEO Martin Lindqvist, “In North America, demand for heavy plate was weak and prices declined throughout the quarter. This led to reduced orders from Steel Service Centers and lower than expected shipments for SSAB Americas. Imports of heavy plate into the USA remained at a high level. A preliminary decision on import duties on heavy plate in the USA is expected during the fourth quarter. Demand for high-strength steels globally remained stable, although with some seasonal slowdown.”
“SSAB expects demand for heavy plate In North America to remain relatively weak during the fourth quarter, although low stocks are expected to result in increased purchases from distributors.”
Parent company SSAB reported an operating profit of SEK 707 million ($78.4 million) in third quarter 2016, driven by higher prices and cost reductions.
(1 SEK = 0.11 USD)
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
USW seeks clarity on USS plans for Granite City Works
The United Steelworkers union has asked U.S. Steel to elaborate on its Granite City Works plans following reports that the steelmaker is ending processing at the facility.
Nucor maintains plate prices, opens October order book
Nucor aims to keep plate prices flat for a seventh straight month with the opening of its October order book.
ArcelorMittal Mexico to import from sister mills as it works to resume DRI production
ArcelorMittal has partially restarted operations at its direct reduction plant in Lazaro Cardenas, Michoacan. An explosion on Aug. 18 rocked the massive steelworks on Mexico’s Pacific coast, impacting production of direct-reduced iron (DRI).
Fall maintenance outages are coming in hot
Labor Day has passed, the sun is starting to set a little earlier each day, and cooler weather has begun to find its way down to many of us across North America. And you know what that means for the steel industry… Fall maintenance outages!
AISI: Domestic steel production ticks up
US raw steel production ticked up in the week ending on Sept. 6 after a decrease the week before, according to the most recent data from the American Iron and Steel Institute (AISI).