Steel Mills

Stelco Swings to Q1 Loss, Predicts Better Q2

Written by Michael Cowden

May 10, 2023

Canadian flat-rolled steelmaker Stelco swung to a loss in the first quarter on lower selling prices and increased costs.

The Hamilton, Ontario-based steelmaker said that increased shipments weren’t enough to offset those headwinds. It predicted better times in the second quarter.

Stelco Screen Shot 2023 05 11 at 8.38.38 AM“Prices in the second quarter have improved to more favorable levels, lead-times have normalized, and we have begun to see some relief from certain inflationary pressures,” CEO and executive chairman Alan Kestenbaum said in a statement released with earnings results on Wednesday, May 10.

“We anticipate a significantly more robust level of earnings in the second quarter and a continued buildup in cash,” he added.

Stelco posted a net loss of Canadian $11 million ($8.23 million USD) in Q1’23, down from a profit of C$906 million in Q1’22 on revenue that fell 24% to C$687 million over the same period.

Average selling prices in Q1’23 were C$960 ($713 USD) per ton, down 56% from $1,493 per ton in Q2’22 but roughly on par with $963 per ton in Q4’22.

Stelco shipped 695,000 net tons in the in Q1’23, up 17% from 594,000 tons in Q1’22. Hot-rolled coil shipments led the way. They were up 23% to 512,000 tons.

Full shipment details are below:

Stelco Q1 2023 shipments SNIP v1

By Michael Cowden, michael@steelmarketupdate.com

Michael Cowden

Michael Cowden is editor-in-chief for Steel Market Update. Cowden has covered the steel industry since 2007. He specializes in flat-rolled steel but has also reported on steel long products, steel pipe and tube, and aluminum. Before joining SMU, Cowden held reporting jobs at Fastmarkets AMM in Chicago, the Associated Press in Pittsburgh, and the Cambodia Daily in Phnom Penh. He has also worked as a copy editor and in marketing at the University of Chicago Press. Cowden has a BA in English from the University of Chicago and an MSJ journalism from Northwestern University’s Medill School of Journalism. Contact him at michael@steelmarketupdate.com or 724-759-7872.

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