Steel Mills
U.S. Steel Narrows Loss in Q3
Written by Sandy Williams
September 19, 2020
U.S. Steel expects another loss in the third quarter of 2020, but not as deep as in the second quarter. The steelmaker anticipates a $100 million adjusted EBITDA loss for the quarter compared to a loss of $264 million in Q2. The flat rolled segment is expected to be negative, but “significantly better” than Q2.
Order book and lead times have improved in the flat-rolled segment allowing the restart of three blast furnaces at U.S. Steel that were idled due to impacts from COVID-19. Two blast furnaces will remain idled through the end of this year.
The tubular market appears to have bottomed, but is showing few signs of improvement. Tubular earnings are expected to be similar to second quarter.
Market conditions have improved in Europe and order book and lead times bode well for continued recovery. An improvement for third-quarter results is expected.
“Improving market conditions experienced in June and July have accelerated through August and September. Strengthening steel fundamentals and our ability to respond quickly to increasing customer demand are expected to result in significantly improved adjusted EBITDA in the third quarter,” commented U.S. Steel President and CEO David Burritt. “We have grown confident in the recovery that is under way in North America and Europe.”
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Trump approves Nippon-U.S. Steel deal, USW cries foul
President Trump has approved the sale of U.S. Steel to Nippon Steel, according to an executive order signed on Friday, June 13. Both the Pittsburgh-based steelmaker and the Japanese steelmaker cheered the development.
Nippon exec responds after Trump ‘golden share’ comments: Report
A Nippon executive has hit back regarding the deal for USS following President Trump's talk of a "golden share" on Thursday.
Trump says US government to control 51% share in USS
President Trump says the US government will hold a 51% stake in U.S. Steel after the Nippon deal.
ArcelorMittal plans wire-drawing closure in Hamilton, shifts production to Montreal
ArcelorMittal’s (AM) Hamilton location to be shuttered, wire production shifting to Montreal.
USS, Nippon Steel quiet as litigation deadline approaches
There has been little word from U.S. Steel, Nippon Steel, or the White House since President Trump endorsed the companies’ “partnership” on social media and celebrated it at the May 30 rally outside Pittsburgh.