A weaker steel market and lower prices in Europe dragged down SSAB’s earnings during the last three months of 2023.
Still, the Swedish steelmaker, which operates two plate mills in the US, said prices in the North American heavy plate market stabilized at the end of the fourth quarter. Inventory levels at North American distributors were still low, SSAB said.
SSAB has one plate mill in Montpelier, Iowa, and another in Mobile, Ala.
US plate prices averaged $1,365 per ton in November, according to SMU’s interactive pricing tool.
As noted in its Q3’23 report, the company enacted cuts at some European operations, including making personnel reductions.
“SSAB Europe adjusted production, cost and staffing and these measures will continue to a certain extent during the first quarter of 2024, as demand for products to the construction segment continues to be low,” SSAB president and CEO Martin Lindqvist said in comments released with Q4 earnings data on Wednesday, Jan. 31. “Also in SSAB Special Steels’ markets, customers have adopted a more cautious approach, especially in Europe.”
Meanwhile, SSAB said growth continues in its products made in EAFs with no carbon dioxide emissions – it delivered more than 50,000 metric tons of SSAB Zero during 2023.
“Interest increased strongly not only in Europe, but also in the USA,” Lindqvist noted.
Overall, SSAB reported revenue of 1.9 billion Swedish krona (SEK) during Q4 ‘23, or $182.8 million. That’s down from 3.5 billion SEK, or $337 million, during the previous quarter. Revenue was 24.46 billion SEK.
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