Stelco forecasts loss for second quarter ending June 30

Stelco forecasts loss for second quarter ending June 30

Canadian largest steelmaker Stelco Inc. reported that they are expecting a net loss between $80 to $90 million for the second quarter ending June 30, adding that final figures will depend on this months's performance. Company states that the decrease in order intake due to weak demand in the market together with increased supply from North American producers and imported steel forced the company to reduce its production volumes at its operations. Besides, low product prices in North America coupled with appreciated Canadian Dollar cut down average revenue per ton. Also, production costs grew up as a result of low production levels and high natural gas and scrap costs. Stelco stressed that they will make no further comments until the second quarter results which are strongly affected by the aforementioned factors are released on July 22, 2003.