Steel News

U. S. Steel Leans into Market Headwinds

9/16/2022 - United States Steel Corporation expects to report adjusted net earnings of somewhere between US$1.90 and US$1.95 per diluted share this quarter, even as market headwinds begin to impact the business, the company has said.  

“The third quarter marks another important step towards our Best for All future,” said U. S. Steel president and chief executive David B. Burritt. “We expect to deliver a solid third quarter, even as the business continues to respond to the market headwinds that have accelerated over the quarter.”

“We continue to operate from a position of strength and are better prepared to create value in today’s market than ever before,” he added. 

In its legacy flat-rolled business, U.S. Steel said demand is softening in most end-markets.  

“Supply chain issues in automotive and appliance end-markets continue, while containers and packaging has softened, and service center buyers remain on the sidelines.”

In Europe, the demand challenges have increased in the third quarter “due to seasonal buying patterns and the increasing effects of the war in Ukraine which has fueled macroeconomic uncertainty and rising energy costs,” the company said. 
“Additionally, headwinds from high-cost raw materials procured at the onset of the war in Ukraine, an extended supply chain and surging energy costs are causing significant margin pressure.”

As a result, the company’s plant in the Czech Republic pulled forward a planned 60-day outage on the No. 2 blast furnace, starting it this month rather than in October.

U. S. Steel made a similar move at its Mon Valley Works in Pennsylvania, where it moved up a planned 30-day outage on the No .3 furnace. Work that was to have started in October was instead commenced earlier this month, it said. 

And in Indiana, U. S. Steel has temporarily idled the No. 8 blast furnace at its Gary Works and temporarily idled the no. 5 tin line there. 

“The company has responded quickly to balance steel supply with customer demand,” U. S. Steel said, adding that it will continue to monitor its order book and adjust its footprint to support customers’ needs.