US steelmaker US Steel has warned that its profit in the fourth quarter of this year will be lower than previously forecast in the fall. This is stated in the company’s message.
US Steel expects adjusted EBITDA for the fourth quarter of 2024 to be approximately $150 million, down from its previous forecast of $225-275 million.
According to David Burritt, President and CEO of US Steel, steel prices in the United States remain low, and costs associated with ramping up production at the Big River 2 (BR2) plant are putting pressure on the quarter. At the same time, the company is working to increase production at the company’s new rolling mill.
In the fourth quarter, the company completed more than $4 billion of capital investments. At the end of October, Big River 2 received its first coil, and in December, it started shipping products to customers.
At the same time, the company noted weak demand and pricing in Europe. To meet production needs after the unplanned fire outage, the company has been temporarily operating three blast furnaces since December 7, but expects to return to two blast furnaces by January.
It is expected that the main profit in the fourth quarter in the flat products segment will be lower than in the previous quarter due to lower sales prices and production volumes, as well as an increase in downtime and maintenance.
US Steel’s comments come after Nucor, the largest US steelmaker, forecasted lower-than-expected earnings due to lower production volumes.
As GMK Center reported earlier, US Steel increased steel shipments by 3.8% in 2023 compared to 2022 to 15.51 million tons. US Steel Europe shipped 3.899 million tons of steel to customers last year, up 3.7% year-on-year. The average selling price was €807 per tonne compared to €1,029 per tonne in 2022.
