US Steel expects an adjusted EBITDA of $55mn in the fourth quarter, compared with an EBITDA loss of $49mn in the preceding one, as steel demand and prices improved through Q4.
David B Burritt, president and chief executive officer, US Steel, noted that in Q4, flat-rolled steel demand rallied in the US and Europe, driven by the automotive, appliance, and packaging industries. He added that the company’s performance in December was supported by higher steel prices. Burritt also stated that strong steel demand was reflected in higher capacity utilization rates and longer lead times.
A strong order backlog prompted the company to restart the #4 blast furnace at Gary Works, Indiana, and the Keetac iron ore mine to meet customer needs in Q4. US Steel expects to further improve its financial performance in 2021 with these decisions.
The company expects its European operations to improve over Q3 as well. However, it noted that the Tubular division did not benefit from the increasing rig count with steel shipments subdued as distributors managed year-end inventories.