SSAB’s ceo Johnny Sjöström believes that prices for the company’s products will remain stable through summer before picking up at the end of the third quarter.
After realising higher shipments in the first quarter of 2026 compared to the corresponding 2025 period (see Kallanish 29 April), it expects volumes to remain stable in the second quarter, and for prices to be “somewhat higher”, according to its Q1 earnings release.
The Swedish group with mills in the USA sells a large share of its output on long-term contracts, and is less exposed to the spot market, therefore follows general market trends with a delay. Sjöström, during an online press conference, monitored by Kallanish, pointed at the company’s high share of long-term contracts, and noted that price increases will become obvious at the end of the third quarter.
By then, distributors will be destocking volumes built up in preparation of the new safeguard measures in the European Union.
Sjöström dismissed suggestions that high inventories could cause a price fall towards June when asked. “I don’t think so; they will maybe stabilise, that’s my speculation.”
Group cfo Leena Craelius explained the structure of long-term contracts are typical for the group with its special products. Of the SSAB Europe division, 15% of the volumes are on annual contracts, 25% are on half-year contract, which she notes is “quite high”, while 40% are on annual contracts, with only 20% on a spot basis.
In the Special Steels division, spot business makes up only 5%. The overall mix of contracts has not changed, she said.
On price increases, Sjöström noted that “all increases we have announced were accepted,” adding that there seems to be a consensus on the market. Right now, the company is just about to open up books for June orders. “What we do is we lift prices before we open the books,” and the company tries to avoid adjustment by mid-month, but is still open to negotiations, he said.
He added that the group’s sales of special steels in the USA are benefiting from the fact that Canada’s Algoma has withdrawn from the US market.
For the group’s steel products that are used for defence, he noted that “we have extremely good margins,” for this sector, and that demand will go up.
However, he noted that the development procedures are slow, and can take two years for a tank, for example.
Author: Christian Koehl
