Market situation and outlook

The market during the second quarter 2023

Demand for high-strength steel was good in most markets, but it weakened somewhat in Europe and continued to be weak in China.

Demand for standard steel in Europe weakened during the second quarter and import volumes into Europe increased. The capacity that was temporarily idled in Europe during 2022, has now mostly been restarted. In Europe, market prices for strip and heavy plate fell during the second quarter. Inventory levels are assessed to be normal. In North America, demand for heavy plate was generally good and the market price was relatively stable. Inventory levels at North American distributors were still low.

In China, market prices for strip and heavy plate fell during the second quarter.

Market outlook for the third quarter of 2023

Demand in Europe weakened during the second quarter and there is a risk of a more pronounced downturn than normal in the third quarter. Demand on the heavy plate market in North America is expected to continue at a good level. Demand for high-strength steel has been good, but customers are showing signs of a more cautious sentiment.

Compared to the second quarter of 2023, SSAB Special Steels’ shipments are assessed to be somewhat lower, due to somewhat weaker market, as well as the planned maintenance outage in Oxelösund. Prices are assessed to be somewhat lower.

SSAB Europe’s shipments are expected to be significantly lower, due to planned maintenance and a weaker market. Prices are expected to be lower in the third quarter than in the second quarter of 2023.

SSAB Americas’ shipments are assessed to be somewhat higher and prices stable.

The costs of raw materials are expected to be somewhat lower than in the prior quarter, especially related to lower coal prices.

Outlook for steel divisions

Definitions: Significantly lower (>10 %), Lower (5-10 %), Somewhat lower (0-5 %), Stable (~0 %), Somewhat higher (0-5 %), Higher (5-10 %), Significantly higher (>10 %)