Steel Mills

SSAB Americas Q1 results hit by lower plate prices, demand

April 24, 2024

Lower demand and prices for steel plate impacted SSAB Americas’ results in the first quarter, Swedish parent company SSAB said in its Q1’24 interim report.

Below are the results for the SSAB Americas segment:

In the report, SSAB highlighted the cautious approach of the American market in the quarter, particularly service centers, in response to lower prices. This caution significantly impacted shipments, with SSAB Americas experiencing an 8% year-on-year (y/y) drop in steel shipments to 437,000 metric tons (mt). Shipments were flat from the prior quarter.

SMU’s interactive pricing tool shows discrete plate prices declined 9% from an average of $1,471 per short ton (st) in Q1’23 to an average of $1,334/st in Q1’24.

The lower prices and reduced shipments hurt SSAB Americas’ Q1 revenues, which dropped 19% y/y to SEK 6,256 million (US$575 million). The Americas segment also posted a 46% y/y decline in adjusted Ebitda to SEK 1,473 million (US$135 million).

SSAB noted the ramp-up of SSAB Zero production in the US continues, with 21,000 mt shipped in Q1.

In the current quarter, SSAB Americas’ total shipments are expected to be somewhat higher than Q1, while realized prices will be somewhat lower, according to the company.

SSAB said its main market in Europe continues to be weak even as the market for high-strength steel is stable.

The company recently announced a major project at its Lulea works in Sweden to convert steelmaking from the blast furnace route to electric-arc furnaces (EAF). The investment comes with a price tag of €4.5 billion (US$4.8 billion).

Additionally, SSAB is considering expanding its US operations upon receipt of a significant grant from the US government.

Laura Miller

Laura Miller is a reporter and editor for Steel Market Update. Since 2007, she has held various editorial and marketing positions with steel industry publications, associations, and mills. In 2021, after a five-year hiatus working across other industries, she returned to steel trade journalism, joining SMU in 2022. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania. She can be reached at laura@steelmarketupdate.com or 724-759-7869.