European demand, profitability improves: US Steel
US Steel says European demand has improved and the region returned to positive Ebitda in February. It is also expected to deliver positive Ebitda in March, Kallanish notes.
The European segment’s adjusted Ebitda will still likely be negative in the first quarter but better than forecast in the previous earnings call in February.
“Market prices are improving, reflecting increased demand and lower import activity,” US Steel says of Europe in its Q1 2023 guidance published on Thursday. “Additionally, the warmer winter has reduced energy costs in the region, creating an additional tailwind to the segment’s expected first-quarter performance.”
The firm said last month that US Steel Kosice (USSK) is projected to ship 3.8-4 million net tons of steel in 2023, following its 3.76mnt deliveries in 2022, which were down 13% on-year. Shipments in the fourth quarter alone were down 30% on-year to 715,000nt, as weakening European steel demand forced numerous regional mills, including USSK, to idle blast furnaces.
USSK reduced to operating with two blast furnaces last September, and then to one in December (see Kallanish passim). It returned to three BF operation in January.
Adam Smith Poland
