Swedish specialty steel producer SSAB has posted its financial results for the first half of the current year, reporting a net profit of SEK 86 million ($12.6 million), compared to a net loss of SEK 281 million in the corresponding period of 2013. The company's sales amounted to SEK 18.5 billion ($2.7 billion) in the first six months, increasing by 4.3 percent year on year.
During the first half, SSAB's crude steel output increased by three percent, while finished steel production was also up five percent, both year on year. Its shipments in the given period increased by six percent to 2.3 million mt compared to the first half of the previous year.
According to SSAB, the improved demand in North America has continued within several segments and, following the maintenance outage at the plant in Mobile at the beginning of the quarter, the company has had full capacity utilization at both of its North American plants. SSAB has also announced two additional price increases during the quarter. The European steel market has continued to recover slowly from low levels. However, shipment volumes for the Europe, Middle East and Africa (EMEA) region were slightly lower than in the first quarter, during which the market was driven partially by a small inventory restocking following the winter season. The operations in Asia experienced a weak quarter in terms of earnings, with the market remaining challenging.
SSAB expects the North American operations to continue to develop positively during the second half of 2014, driven by an improved market and positive effects of previous price increases. Demand within EMEA during the second half of the year is expected to be approximately in line with the first half of the year, but the company envisages continued uncertainly in Russia and Turkey. Steel prices in the EMEA region are expected to be stable or slightly weaker. The Asian market remains weak, with no anticipation of an improvement during the second half of the year.