Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

US Steel’s flat rolled production of 11.409mn nt decreased by 4pc compared to the previous year. The steelmaker’s net sales decreased by 8.8pc to $12.937bn in 2019 from $14.178bn the previous year. US Steel Europe’s flat rolled output also fell by 22pc to 3.903mn nt.

 

The company’s raw steel capacity utilization in flat rolled decreased in 2019 to 67pc from 70pc during the previous year. US Steel Europe’s capacity decreased from 100pc in 2018 to 78pc a year later.

 

US Steel’s shipments excluding inter-segment shipments decreased by 4.4pc to 15.059mn nt compared to the previous year. Flat rolled shipments rose by 1.8pc to 10.700mn nt, while US Steel Europe decreased by shipments by 19.5pc to 3.590mn nt, and tubular decreased by 1.4pc to 769,000nt. 

 

The steelmaker’s net costs declined by 2pc to $12.082bn in 2019 from $12.305bn during the previous year. The company reported a net loss of $230mn in 2019, unlike the previous year when it posted a profit of $1.124bn. The full-year adjusted EBITDA in 2019 was $711mn, and $4mn in the fourth quarter.

 

US Steel posted a net loss of $642mn in 2019 compared with a net profit of $1.115mn in 2018. It incurred the largest quarter loss in Q4 due to $567mn in restructuring charges and tax valuation allowance.

 

THe EBITDA for its flat-rolled steel segment decreased by 77.8pc to $196mn in 2019 compared to $883mn in 2018. US Steel Europe also lost ground in 2019 with an EBITDA loss totaling $57mn against a gain of $359mn in the prior year. Tubular had a slightly larger EBITDA loss of of $67mn compared to a loss of $58mn in 2018. 

 

The flat rolled average realized price in 2019 decreased by 7.2pc to $753/nt, while US Steel Europe’s average realized prices decreased by 5.9pc to $652/nt, and tubular decreased by 2.2pc to $1,450/nt.

 

Total capital expenditures rose by 25.1pc to $1,252mn in 2019 compared to the previous year, including an investment of $973mn in flat rolled, up by 15pc compared to the previous year. There was $153mn investment in US Steel Europe, up by 47pc, $145mn in Tubular, which rose by 222pc, and $11mn in other businesses. 

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