Swedish Steel AB said it sees signs of an improved supply-demand balance in the European market, with prices rising during the third quarter, sustained by the new EU trade measures that entered into force July 1, the steelmaker said Oct. 28 on its Q3 earnings.
SSAB said costs are increasing and realized prices for the steel divisions are expected to be somewhat higher in the fourth quarter than in the previous quarter.
The steel producer expects fourth-quarter shipments to be 5%-10% higher quarter over quarter at SSAB Europe, broadly stable at SSAB Americas and up to 5% lower at SSAB Special Steels. Raw-material costs are expected to be somewhat higher, while other variable costs, including freight and energy, are expected to remain high.
The outlook reflects divergent regional conditions. European steel demand remained cautious in the third quarter, but lower imports following new EU trade measures helped improve the supply-demand balance and lift plate and strip prices. North American plate markets remained strong, with rising prices and relatively low distributor inventories.
SSAB crude steel production increased 5% year over year to 1.90 million metric tons, while rolling production rose by 7% to 1.705 million mt. Steel shipments climbed by 4% to 1.530 million mt. However, all three measures declined from the second quarter due to planned maintenance and seasonally weaker demand. Special Steels shipments rose 9% year over year to 314,000 mt, while SSAB Europe’s deliveries increased 4% to 770,000 mt.
On decarbonization, SSAB maintained its key commissioning milestones. The Oxelösund electric arc furnace (EAF) is scheduled to begin production in the second quarter of 2027, while the new Luleå mini-mill remains within budget and on track for a late-2029 startup. Timing for the subsequent Raahe conversion remains contingent on raw material availability, financing capacity, market conditions and experience from earlier projects.
SSAB lowered its 2026 maintenance and strategic capital expenditure forecast to 11.2 billion Swedish kronor from 13.5 billion Kronor, citing revised supplier-payment timing rather than project delays.
Author: Annalisa Villa
