Swedish specialty steel producer SSAB has announced that volume growth, especially within strip products, has been much weaker than the estimates which were made in connection with the second quarter results.
According to SSAB's statement, so far during the third quarter capacity utilization within SSAB EMEA's strip operations has been slightly less than 60 percent. Apart from weak demand, the sharp fall in iron ore spot prices is expected to impact on SSAB's earnings during the first quarter of 2013.
SSAB Americas' operations have also been affected by a weakening in demand, as forecast in the report for the second quarter. The economic slowdown in China has had a negative impact on operations within SSAB APAC.
As a result, SSAB is expected to report an operating loss of approximately SEK 700 million ($106.5 million) for the third quarter of 2012.