Steel Mills

SSAB Q3 Profits Fall on Slowdown in Europe, Despite Strength in US Plate

October 29, 2023

SSAB reported lower earnings in the third quarter on weaker demand in Europe that was only partially offset by solid demand for plate in North America.

Recall that that the Swedish steelmaker operates two plate mills in the US – one in Montpelier, Iowa, and the other in Mobile, Ala.

“Demand in Europe is weak, and the seasonal slowdown during the third quarter was more pronounced than normal,” SSAB president and CEO Martin Lindqvist said in comments released with third-quarter earnings data on Wednesday, Oct. 25.

“Measures have been introduced to adjust production, cost, and staffing,” he added. “These measures include temporary and permanent layoffs … a restrictive approach to recruitment and other fixed costs.”

In the North American plate market, in contrast, demand was “generally good” in the third quarter ended Sept. 30 despite prices falling from “a high level,” SSAB said.

US plate prices average $1,475 per ton ($73.75 per cwt), down from $1,520 per ton in mid/late July but still hundreds of dollars higher than pre-pandemic norms, according to SMU’s interactive pricing tool.

For the fourth quarter, SSAB expects that European demand will “remain subdued.” The North American plate market, in contrast, is expected to “continue at a good level,” SSAB said.

All told, SSAB reported a profit 3.51 billion Swedish krona (SEK), or $320 million US dollars (USD), in the third quarter of 2023, down 31% from SEK 5.07 billion ($460 million USD) in the third quarter of 2022. Revenue fell 7% to SEK 29.3 billion ($2.65 billion USD) over the same period.

Michael Cowden

Michael Cowden is managing editor for Steel Market Update. Cowden has covered the steel industry since 2007. He has since 2014 specialized in flat-rolled steel but has previously reported on steel long products, steel pipe and tube as well as aluminum. Before joining SMU, Cowden held reporting jobs at Fastmarkets AMM in Chicago - where he was involved in launching AMM's daily hot-rolled coil index, 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.