SSAB Americas Expects Stable to Improving Market Conditions

SSAB Americas had sales of SEK 3,639 million ($575 million) in the third quarter of 2013 on shipments of 628 thousand tonnes (692,239 tons). Niche products accounted for 166 thousand tonnes (182,980 tons) or 26 percent of total shipments.  In comparison, shipments were 16 percent higher year over year and 9 percent higher quarterly.  Sales during the third quarter were 1 percent lower year-over-year due to lower prices, negative currency effects and a weaker product mix but were mostly offset by higher volumes. SSAB reported niche steel volumes and prices were unchanged from the previous quarter; prices for standard steel dropped 3 percent.

Martin Lindqvist, president & CEO, said there is a “continued squeeze between selling prices and scrap.”  SSAB Americas steel production is entirely dependent on scrap for its production of steel slabs using electric arc furnaces. Scrap spot prices rose early in the third quarter, fell and ended 2 percent higher than second quarter 2013 and 8 percent lower end of third quarter 2012.