Steel Mills

USS anticipates Q4 loss on weak demand, BR2 start-up
Written by Laura Miller
December 19, 2024
Amid a challenging pricing and demand environment, and with the ongoing ramp-up of the Big River 2 (BR2) mill, U.S. Steel expects to post a loss in the fourth quarter.
The Pittsburgh-based steelmaker said in earnings guidance released on Thursday that it expects adjusted net earnings of -$0.29 to -$0.25 per diluted share for Q4. That equates to a net loss attributable to U.S. Steel Corp. of ~$115 million.
It noted that adjusted EBITDA, at ~$150 million for the quarter, will be below previous expectations.
“Steel prices remained depressed and BR2 ramp-related costs exert pressure on the quarter, while the Big River team works towards increasing prime ton production in our new mill,” President and CEO David B. Burritt explained.
US operations
The steelmaker expects adjusted EBITDA from the Flat-Rolled segment to decline sequentially due to lower selling prices and volumes, and increased maintenance and outage activity.
The Mini Mill segment will likely see lower EBITDA as well. This is mainly due to lower volumes, and includes ~$30 million in start-up and one-time construction costs and $20 million in ramp-related impact from BR2.
“We look to steadily ramp to full capacity in 2025,” the company said of BR2. The project rolled its first coil on Oct. 31 and began shipping material to customers this month.
Meanwhile, the Tubular segment has seen increased volumes in Q4 and is the only one expected to see a sequential rise in EBITDA.
European operations
U.S. Steel’s European operations continue to be impacted by weak demand. “Lower volumes, average selling prices, and volume inefficiencies” are driving the segment’s adjusted EBITDA lower, the company said.
“In Europe, the demand and pricing environment remains weak,” Burritt commented. “To meet production volume requirements after unplanned downtime from a fire at the #1 Caster, we are temporarily operating three blast furnaces beginning Dec. 7, but expect to return to two blast furnaces by January.”

Laura Miller
Read more from Laura MillerLatest 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 […]