SSAB Looking Forward to Improved Demand in 2016

SSAB faced a tough market in fourth quarter resulting in an operating loss of SEK 802 million ($94.4 million). Low volumes and steel prices in North America and Europe and a maintenance outage at SSAB Special Steels were contributing factors. For the full year 2015, SSAB posted an operating loss of SEK 128 million ($15.2 million) compared to a profit of SEK 894 million ($106 million) in 2014.

President & CEO Martin Lindqvist commented, “The fourth quarter was characterized by a tough market with global overcapacity, volatile prices of raw materials and pressure on steel prices. Falling prices of raw materials and continued high imports from Asia have exerted further pressure on steel prices both in North America and Europe. Customers have delayed orders and reduced their inventories hoping to take advantage of lower prices at the beginning of 2016. Underlying demand for steel was higher than apparent demand and we estimate that volumes will improve in all markets during the first quarter of 2016, once apparent demand aligns with underlying demand.”