Swedish specialty steel producer SSAB has announced that it has adjusted production at SSAB Europe to lower volumes as the European market and demand have weakened and the market outlook is uncertain due to rising inflation, component shortages, and the war between Russia and Ukraine. Therefore, to reduce capacity in the fourth quarter, the company plans to idle its blast furnace in Raahe in Finland in mid-November for maintenance. The maintenance work at the furnace with an annual capacity of 1.3 million mt of pig iron is expected to last for six to eight weeks.
In the third quarter this year, SSAB’s crude steel output increased by four percent to 1.91 million mt, while its finished steel production came to 1.67 million mt, down by 5.3 percent, both year on year. Its steel shipments in the given period went down by 9.9 percent year on year to 1.46 million mt.
The company reported a net profit of SEK 5.07 billion ($465.49 million) in the given quarter, compared to a net profit of SEK 4.48 billion in the corresponding period of 2021 and a net profit of SEK 8.00 billion in the second quarter this year. The company’s sales revenues amounted to SEK 31.51 billion ($2.89 billion) in the third quarter, decreasing by 11.2 percent quarter on quarter and up by 24.9 percent year on year. In the given period, the company reported an operating profit of SEK 6.74 billion ($618.83 million) compared to an operating profit of SEK 10.39 billion recorded in the second quarter this year.
According to the statement, with the goal of producing fossil-free steel in 2030, feasibility studies for the company’s planned mini-mills in Luleå and Raahe are ongoing as customer demand for fossil-free steel continues to increase.