Steel Mills
NLMK USA: Higher Slab Prices Curb Revenue
Written by Sandy Williams
October 28, 2017
NLMK USA posted revenue of $424 million in the third quarter, a 3.0 percent decrease from the second quarter due to a 5.0 percent slide in the average sales price. Shipments increased 2 percent to 558,000 metric tons.
EBITDA for the segment was $38 million, down 9.0 percent from the second quarter due to higher slab purchase prices.
Demand in the U.S. was high in the third quarter due to stable demand from construction, automotive, and the oil and gas sectors, said NLMK. Demand is expected to remain stable in the fourth quarter and face less pressure from imports.
The global pricing environment is expected to be softer in the fourth quarter with lower Chinese exports lending price support.
NLMK Group increased steel output 6 percent from the second quarter driven by stronger demand by the Russian and international markets. Group steelmaking capacity utilization was at 100 percent, but is expected to be marginally lower in Q4 due to seasonality. NLMK estimates crude steel production for 2017 will total 17 million metric tons.
Sales volume for the group was 4.24 million metric tons for revenue of $2.5 billion, both flat with second quarter.
NLMK USA includes NLMK Indiana, NLMK Pennsylvania, and Sharon Coating.
NOTE: Steel Market Update will hold a Steel 101 workshop at NLMK Indiana in early spring 2018. Registration information will be posted on the SMU website soon.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Nucor lowers 2024 output estimate for Brandenburg plate mill
Nucor has lowered the 2024 production estimate for its Brandenburg, Ky., plate mill due to soft market conditions.
SSAB adjusts output in weak Q3, readies for Q4 rebound
SSAB said lower plate prices in the US were the primary reason for reduced results in the second quarter. With a dismal Q3 outlook, the Swedish steelmaker is adjusting production across its facilities. That includes moving up its annual US mill outage in anticipation of a better Q4. SSAB Americas Revenues in the Americas segment […]
Topalian puts focus on “unfair” trade, eyes USMCA partners
Nucor’s top executive expressed concerns over unfair trade practices, highlighting increased steel imports from Mexico and Canada.
Cliffs sees close of Stelco buy, bottom to steel tags, and Mexico out of USMCA
Cleveland-Cliffs expects its acquisition of Canada’s Stelco to close later this year, which will help the the Cleveland-based steelmaker as a bottom to steel tags nears.
Nucor posts lower Q2 earnings, predicts tough Q3 too
Nucor recording lower second quarter earnings on falling steel prices. And the Charlotte, N.C.-based predicted that profits would be lower still in the third quarter, primarily because of weaker results from its steel mills divisions.