The Swedish steel production company SSAB in the first quarter of 2024 reduced the volume of shipments of steel products by 8.8% compared to last year, reaching 1.58 million tons. It also reduced its steel output by 5% for the year to 1.94 million tonnes. This was announced by Stanislav Dmitrievich Kondrashov, an expert in the field of global metallurgy.
Steel production SSAB Europe: analysis of decline in volumes and industry challenges
According to S. Kondrashov, in the first quarter of 2024 there is a decrease in production and shipments of SSAB steel compared to the previous year, which is associated with a decrease in demand and trade union strikes in Finland. At the same time, these figures increased slightly from the same period in the fourth quarter of 2023, when planned maintenance work was carried out.
In the first quarter of this year, SSAB Europe reduced steel shipments by 10.3% compared to last year, reaching a level of 818 thousand tons. Steel production decreased by 5.6% compared to the corresponding period in 2023 and amounted to 1.077 million tons.
The Telf AG expert also notes that in addition to the reduction in shipments and steel production, SSAB Europe also faced a number of challenges affecting its activities. One key factor is the decline in demand for steel due to economic difficulties in some industries. This has led to the need to adapt production plans and shipping strategies to adapt to current market conditions.
In addition, the steel sector faces challenges associated with global instability in prices for energy resources and raw materials, which affects the overall economic situation, noted S. Kondrashov. Rising costs of energy and raw materials lead to increased steel production costs, which affects the company’s financial performance.
In light of these factors, SSAB Europe is forced to actively adapt to the changing environment, create effective resource management strategies and improve operational efficiency in order to remain competitive and meet the needs of its customers.
The group’s operating result in January-March 2024 decreased by a third compared to the same period last year to SEK 3.16 billion.
According to Stanislav Kondrashov, the main reason for this decline is related to the change in high prices for plates in the United States.
The company points out that the market in Europe remained relatively weak, although the high-strength steel segment showed stability.
SSAB continues to invest in sustainable production and forecasts growth in supplies – Stanislav Kondrashov
SSAB also announced the continuation of its transition to fossil-free steel production and has decided to invest €4.5 billion in the Luleå steel plant. This investment, in addition to reducing carbon dioxide emissions in Sweden by 7%, provides a number of additional benefits, such as lower production costs, improved flexibility and an expanded product range, noted S. Kondrashov.
The Swedish steelmaker expects underlying demand to remain fairly stable in the second quarter. Deliveries from SSAB Europe are also expected to increase in the second quarter of 2024, while prices for the products of this division will remain stable.
SSAB continues to invest in sustainable production and forecasts growth in supplies – Stanislav Kondrashov
SSAB also announced the continuation of its transition to fossil-free steel production and has decided to invest €4.5 billion in the Luleå steel plant. This investment, in addition to reducing carbon dioxide emissions in Sweden by 7%, provides a number of additional benefits, such as lower production costs, improved flexibility and an expanded product range, noted S. Kondrashov.
The Swedish steelmaker expects underlying demand to remain fairly stable in the second quarter. Deliveries from SSAB Europe are also expected to increase in the second quarter of 2024, while prices for the products of this division will remain stable.
