Steel Mills

Stelco Forecasts Strong Earnings
Written by Tim Triplett
March 28, 2018
Pointing to improving market conditions and favorable pricing trends, Canada’s Stelco forecasts Q1 earnings of $60-70 million and Q2 earnings of $120-150 million.
The integrated steel producer expects first-quarter 2018 shipments to be 3-5 percent higher than fourth-quarter 2017. In late Q1 2018, the company expanded its distribution capabilities by adding 200 rail cars to its distribution fleet and increased its shipping capacity through its LEW dock project. Those enhancements are expected to improve shipments in the second quarter. Capital projects remain largely on schedule and on budget, the company said.
Stelco’s forecast is based on several key assumptions: improved margins from higher steel prices, increases in shipments due to expanded distribution capabilities, a gradual shift in product mix to higher-value steels, new customer development, and the company’s ability to continue accessing the U.S. market without any adverse trade restrictions, including possible NAFTA changes.

Tim Triplett
Read more from Tim TriplettLatest in Steel Mills

SSAB announces $74M expansion in Alabama
The project will expand heat treat capacity at its Axis, Alabama plant

ArcelorMittal’s EAF in Alabama expects first heat in Q2
The facility at AMNS Calvert will be the first EAF in North America capable of supplying exposed automotive grades with domestically melted and poured material.

Nucor’s Topalian lauds Trump’s trade policies, downplays impact
Nucor’s top exec Leon Topalian said the benefit of the current administration’s aggressive trade policies “trumps” any risk of potentially higher raw materials prices.

SSAB reports higher production, shipments
But profits slipped vs. last year.

Nucor earnings slump in first quarter, but better times seen ahead
Nucor’s profits fell precipitously in the first quarter, but the company has a rosier outlook for the following quarter.