Steel Mills

U.S. Steel follows Nucor, guides to lower Q4 profits
Written by Michael Cowden
December 14, 2023
U.S. Steel on Thursday afternoon said it expected lower earnings in the fourth quarter compared to the third.
The Pittsburgh-based steelmaker predicted fourth-quarter adjusted earnings before interest, income taxes, depreciation, and amortization (Ebitda) of approximately $250 million, or $0.20-$0.25 per diluted share. That’s down 56% from adjusted Ebitda of $578 million in the third quarter.
Competitor Nucor also guided toward lower fourth-quarter earnings.
U.S. Steel made little mention in its guidance of the sales process it has undertaken and that is reportedly nearing a close. Little mention, that is, except in a footnote to a table: “Excludes potential charges related to pending operational footprint actions and any potential outcome from the strategic alternatives process.”
The company said the lower guidance stemmed partly from lower shipment volumes and lower realized selling prices at its flat-rolled mills.
Recall that while spot prices soared in the fourth quarter, contract pricing typically lags spot price moves. That means contract prices in the fourth quarter reflected lower prices in the third quarter. Contract prices in the first quarter, in contrast, will reflect higher fourth-quarter spot prices.
Sales volumes fell because of because of the idling of the ‘B’ blast furnace at U.S. Steel’s Granite City Works near St. Louis. They also fell because of planned maintenance at other mills, including its Big River Steel EAF sheet mill in Arkansas, the company said.
Also weighing on results were $10 million in start-up costs for U.S. Steel’s direct-reduced grade pellet plant at its Keetac mining and processing operations on the Mesabi Iron Range in Minnesota. The company said it had already produced the first pellets from the new DR grade plant, which could be used to supply EAFs sheet mills such as Big River.
U.S. Steel president and CEO David Burritt focused on the positive, noting that the company had “successfully navigated” the United Auto Workers (UAW) union strike.
“Our diverse order book allowed us to repurpose tons impacted by the strike to other customers,” Burritt said.
“Looking ahead, domestic steel markets are improving, customer demand is growing, and spot selling prices are increasing,” he added.
Also on the automotive front, U.S. Steel has renegotiated contracts with automotive customers that feature slightly higher volumes and “better prices,” Burritt said.
Turning to operations, Burritt said that U.S. Steel’s major projects remain on track. The company in 2024 expects to complete a new, dual coating line at Big River and to finish work on Big River 2.
Recall that Big River 2 will be an upgraded the first Big River mill, which itself is one of the newest EAF sheet mills in the US. It is expected to add another three million tons annually of EAF sheet capacity to U.S. Steel’s offerings. (SMU has a complete list of new flat-rolled steel capacity here.)
Big River Steel 2 will also sport the following improvements:
- “Endless” casting and rolling technology – the first of its kind in North America
- A heavy-gauge HR pickled substrate coating line to serve emerging markets
- An advance high-strength steel (AHSS) CR and coating line

Michael Cowden
Read more from Michael CowdenLatest in Steel Mills

August US mill shipments slip but still higher than last year
The American Iron and Steel Institute reported a decline in the monthly shipments of US mills from July to August.

TransPod, Algoma, Supreme Steel linkup anchors Canadian steel in high-speed transit build
The three Canadian companies have announced a strategic partnership to support the development of an ultra-high-speed transit line from Edmonton to Calgary.

Metallus, USW agree to tentative four-year labor deal
Metallus and the United Steelworkers (USW) have agreed to a tentative four-year labor contract.

ArcelorMittal Dofasco resumes cokemaking after emergency maintenance
The Canadian steelmaker reported on Sept. 30 that “urgent maintenance” was needed in its coke plant off-gas systems. The work required coke oven gas from the No. 2 coke plant to be flared for most of that week.

AISI: Raw steel production ticks back down
US raw steel output declined last week after increasing the week prior, according to the latest data from the American Iron and Steel Institute (AISI). Output has see-sawed from week to week since mid-August. Still, it has remained historically strong over the past four months and has held near multi-year highs since June. Domestic mills […]