CBAM has a potential cost impact on long products of €50/short ton ($58) but is yet to be fully realised due to significant import frontloading prior to CBAM implementation in January, says US steelmaker CMC of its European operations.
CMC Poland saw steel shipments fall 8% on-year in its second fiscal quarter through February to 284,000 short tons, driven by lower rebar deliveries as merchant bar and other products sales rose 2% to 215,000st, Kallanish notes.
The large quantity of rebar imported ahead of CBAM implementation temporarily dampened demand for domestic material, CMC notes. Despite this overhang, the average selling price for CMC’s steel products rose 10% on-year to $672/st, in anticipation of CBAM’s eventual supportive impact. Cost of scrap utilised was up 6% to $356/st.
CMC’s Europe Steel Group achieved its highest total steel products average selling price in six quarters.
Revenue increased 1% to $200 million but adjusted Ebitda was negative 0.7% versus positive 0.4% a year earlier.
Adjusted Ebitda should improve substantially in the following quarter on higher seasonal volumes, modestly improved metal margins, and the anticipated receipt of an approximately $20m CO2 credit, CMC says.
In the six months through February, steel shipments grew 4% on-year to 646,000st, while sales rose 10% to $447.7m but Ebitda fell 64% to $9.5m.
