Swedish specialty steel producer SSAB has posted its financial results for the first quarter of the current year, reporting a net loss of SEK 49 million ($7.5 million) for the given quarter, compared to a net loss of SEK 137 million in the corresponding quarter of 2013. The company's sales amounted to SEK 9.17 billion ($1.4 billion) in the first quarter this year, rising four percent year on year, supported by a higher sales volume.
During the first quarter, SSAB's crude steel output increased by four percent, while finished steel production was also up four percent, both year on year. Its shipments in the given period rose by seven percent to 1.17 million mt compared to the corresponding quarter of the previous year.
According to SSAB, the beginning of 2014 was cautiously positive for the steel market in general and for SSAB as a company. Demand in North America was good and prices of standard steels increased. At the same time, the company suffered from production and delivery disruptions due to extreme weather conditions in North America, which also resulted in higher costs for scrap metal, which is the primary input material for SSAB's American operations.
Demand for steel within the EU improved somewhat during the first quarter, though with continued price pressure in the market. Following a long downward trend, demand stabilized or showed a modest upturn. The positive trend in the EU was to some degree counterbalanced by great uncertainty and lower sales to Russia and Turkey.
Regarding the 2014 outlook, in North America the slowdown resulting from the extreme weather conditions during the first quarter is assumed to be temporary, and the economy is expected to continue to develop positively during the second quarter. Even though the rate of growth in China has slowed down, demand for steel in Asia is expected to continue to develop positively during the coming quarter.