US Steel Foresees Record Q2 Performance

US Steel’s flat-rolled segment is seeing increased demand and higher shipment volumes, with EBITDA anticipated to be “meaningfully higher than the first quarter,” the company said in its latest earnings guidance. First quarter earnings before interest and income taxes were $513 million.

EBITDA within the mini mill segment should be similar to the first quarter’s strong performance, with lower average selling prices and elevated metallics costs offsetting increased order activity. The segment’s earnings before interest and income taxes were $278 million in the first quarter.

The second quarter performance of US Steel’s European segment will be better than the previous quarter (when earnings before interest and income taxes were $264 million), with higher selling prices for steel more than offsetting higher raw material costs due to the war in Ukraine.

Volumes within the tubular segment are expected to be similar to the first quarter, but higher average selling prices should result in stronger EBITDA. The segment’s first quarter earnings before interest and income taxes were $77 million. A “resurgence in the energy markets is fueling demand for seamless pipe” from its Fairfield Tubular operations in Alabama, the company said.

“Our broad end market exposure keeps our business resilient with demand across a diverse customer base, including the resurging energy market. Our focus on strategic end markets and the continued realization of significantly increased fixed price contracts is again expected to generate another quarter of record performance,” commented president and CEO David Burritt.

By Laura Miller, Laura@SteelMarketUpdate.com