Swedish steelmaker SSAB reported a 40pct YoY decline in operating profit to SEK 2.96 bln (USD 275 mln) for Q2 2024, according to a press release. The company attributed this drop primarily to lower US heavy plate prices. While the European market remained relatively weak, the market for high-strength steel showed more resilience.
SSAB’s revenue for the quarter was SEK 28.2 bln (USD 2.61 bln), down from SEK 31.7 bln in the same period last year. The company experienced lower production and shipments compared to Q2 2023, driven by reduced demand and political strikes in Finland. Crude steel output decreased to 1.92 mln tons from 2.09 mln tons in Q2 2023 and finished steel production slightly declined to 1.83 mln tons from 1.89 mln tons in Q1 2023.
Steel shipments also fell, reaching 1.64 mln tons in Q2 2024, compared to 1.72 mln tons in the same quarter last year. SSAB announced plans for maintenance during the third quarter at most production sites, which will result in lower output. SSAB Americas will advance the maintenance stop at the Montpelier mill.
The company expects a more pronounced seasonal downturn in the third quarter, impacting SSAB Special Steels and SSAB Europe. SSAB Special Steels’ shipments are projected to decrease, with prices also slightly lower compared to Q2 2024. SSAB Europe’s shipments and prices are expected to drop in the third quarter, while SSAB Americas anticipates significantly lower shipments and prices. Additionally, raw material costs are expected to be somewhat lower than in the previous quarter.
1 USD / 10.78 SEK
