Canada-based Stelco Steel’s has forecast to ship 650,000nt (589,670mt) of finished steel in the first quarter (Jan-Mar), an increase of 6pc compared with 612,000nt shipped in the prior year quarter. Stelco’s finished steel shipments were at 2,444,000nt in 2019, down by 7pc from 2,620,000nt in 2018.
Stelco aims to diversify its offerings with more value-added products and lining of a new 1mn/yr capacity pig iron caster in the second half of the year. The plant is expected to start pig iron shipment in the fourth quarter of 2020.
Full year results
Hot-rolled steel shipments dropped 18pc in 2019. Stelco sold 1,699,000nt Hot rolled steel in 2019, down from 2,080,000nt in 2018. Coated steel shipments lowered to 326,000nt, down 4pc from 338,000nt in 2018. Shipments of cold-rolled coil products were 89,000nt in 2019. The 66pc rise in shipments of cold-rolled and coated sheet products in the first half of 2019 could be a result of sustainable changes in product mix.
Stelco sold its steel shipments at an average selling price of C$729/nt ($550.58) ex-plant, down 18pc from C$889/nt in the prior year.
In 2019, Stelco’s profit dropped to C$20mn, down 92pc from C$253mn in 2018.
Shipping volumes decreased to 2.4mn nt in 2019 from 2.6mn nt in 2018, mainly from lower hot roll coil shipments partly offset by higher cold-rolled and slab shipments during the year.
December quarter results
In December quarter, Stelco shipped 633,000nt of total steel, a decrease of 6pc from 673,000nt in the prior year. Drop in the shipments were led by challenging market situation including an unprecedented drop in global steel prices in the period. The average price of all steel shipments was C$659/nt ($498/nt), down 28pc from the prior year.
Stelco shipped 382,000nt of hot-rolled coil (HRC), 106,000nt of coated products, 40,000nt of cold-rolled steel and 105,000nt of other steel products including slabs and non-prime steel.
For the December quarter, the company posted a net loss of C$24mn. Net income was C$134mn compared to C$110mn in the prior quarter.