Swedish specialty steel producer SSAB has posted its financial results for the third quarter and the first nine months of the current year, reporting a net loss of SEK 520 million ($79.7 million) for the third quarter, compared to a net loss of SEK 519 million in the corresponding quarter of 2012. The company's sales amounted to SEK 8.4 billion ($1.3 billion) in the third quarter this year, down four percent year on year, due to lower prices, a weaker product mix and currency effects.
In the first nine months of the year, the company saw a net loss of SEK 801 million ($122.8 million), compared to a net profit of SEK 242 million in the same period of 2012. SSAB's sales in January-September this year decreased by 14.6 percent year on year to SEK 26.1 billion ($4 billion).
During the third quarter, SSAB's crude steel output increased by 25 percent, while finished steel production was up 17 percent, both year on year. Its shipments in the given period improved by 12 percent to 1.07 million mt compared to the corresponding quarter of the previous year.
According to SSAB, global steel demand during the third quarter was at the same level as during the second quarter, and SSAB's shipments were unchanged compared with the previous quarter. However, the product mix changed somewhat towards a higher percentage of standard steels as demand for niche products within the mining industry and construction machinery was weakening.
SSAB pointed out that market prices in Europe for both strip and plate products increased slightly during the third quarter. However, prices at the end of the quarter were still at a much lower level than at the beginning of the year. Plate prices in North America increased slightly during the quarter. In China, market prices for both strip and plate products increased at the beginning of the third quarter but subsequently fell back again.
During the fourth quarter, SSAB expects that the US economic recovery will have a positive impact on steel demand. In Europe, demand and prices for steel is expected to remain unchanged but in Asia, demand for steel is expected to grow positively.