Steel Mills
U.S Steel Guides Higher for 2018 Due to Section 232
Written by Sandy Williams
March 13, 2018
U.S. Steel provided full-year 2018 earnings guidance on Monday in light of the recent Section 232 tariffs.
As a result of the imposition of a 25 percent tariff on steel imports, the company decided to resume steelmaking operations at Granite City Works with the restart of its “B” blast furnace. U.S. Steel anticipates incremental shipments of approximately 100,000 tons per month from Granite City Works once the restart process is completed. Benefits from Granite City will be reflected in the second half of 2018 as shipments increase and recent price changes become more fully realized for spot and contract volumes.
First-quarter EBITDA is expected to be approximately $250 million. Based on an assessment of market conditions resulting from Section 232 actions, U.S. Steel expects full-year EBITDA of approximately $1.7 billion, up from $1.5 billion previously.
In an analyst note, Key Banc Capital Markets said, “We believe the guidance takes into account U.S. sheet spot pricing cyclicality, including ~$750/ton HRC on average for the year, which is in line with the year-to-date spot average.”
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Cliffs plans to idle three mills, cut 950 jobs on ‘insufficient demand and pricing’
Cleveland-Cliffs plans to indefinitely idle its steel mill in Riverdale, Ill., as well as mills in Conshohocken, Pa., and Steelton, Pa. The Cleveland-based steelmaker said all three facilities would be idled on or around June 30. Approximately 950 jobs will be impacted, the company said.
CRU: Usiminas may reduce capex unless government strengthens protection
“The lack of effective measures to create fair competition, amid a surge in subsidized imports, is the main threat to the sustainability of Brazil’s steel industry and its value chain,” CEO Marcelo Chara said.
USS swings to loss in first quarter on N. American flat-rolled segment woes
U.S. Steel CEO praised the company’s resilience, “despite the seasonally low results driven by annual mining logistics constraints in our North American Flat-Rolled segment and lagging spot prices.”
Nucor gives updates on new capacity coming online
Nucor said several of its capital projects will start operations within the next year and provided an update on them.
Algoma swings to loss on ‘market challenges’ and ‘tariff uncertainties’
Canada’s Algoma Steel swung to a loss in the first quarter amid "market challenges," and the company now expects first steel production from its first EAF in the second quarter.