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.
“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:
By Michael Cowden, michael@steelmarketupdate.com
Michael Cowden
Read more from Michael CowdenLatest in Steel Mills
White House may delay decision on USS-Nippon deal until after election: report
The White House decision on blocking Nippon Steel’s play for Pittsburgh-based U.S. Steel might be pushed back until after the upcoming presidential election, according to a report in the Washington Post.
Hybar lands ‘strategic’ investment from Quanta Services
Hybar said that contracting services firm Quanta Services has made a “strategic” investment in the company as it build its sustainable rebar mill in northeast Arkansas.
Cliffs to place C-6 furnace at Cleveland Works on hot idle: sources
Cleveland-Cliffs plans to place the C-6 blast furnace at its Cleveland Works in Ohio on hot idle in October, according to sources familiar with the matter.
Domestic steelmakers push back on Ternium’s 232 exclusion requests
Ternium USA Inc. has requested a host of Section 232 tariff exclusions since the US reimposed the duties on Mexican steel earlier this summer. Domestic steelmakers, however, are pushing back.
USS introduces ‘ZMAG’ coated steel to withstand tough weather
U.S. Steel has rolled out “ZMAG,” a flat-rolled coated steel product intended to endure harsh weather conditions.