Demand for high-strength steel was somewhat lower compared with the previous quarter, and in particular the market in Europe weakened during the end of the second quarter.
Demand for standard steel in Europe was weak during the quarter in most segments except for the vehicle industry, where demand continued to be at a good level.
Market prices for strip in Europe were low and weakened further during the end of the second quarter. Heavy plate prices decreased somewhat during the quarter. Distributors have continued to adopt a cautious approach and import volumes were relatively high during the quarter, while a minor part of capacity in Europe was idled. Inventory levels in the market are estimated to be normal.
In North America, demand for heavy plate was lower and market prices saw a negative trend throughout the second quarter. Inventory levels at North American distributors were still low, but distributors were generally cautious against a backdrop of falling market prices.
Market prices in China for strip and heavy plate were somewhat lower at the end of the second quarter compared to end of the first quarter.
The seasonal downturn during the third quarter is assessed to be more pronounced than normal and will especially impact SSAB Special Steels and SSAB Europe. Most of SSAB’s production sites will carry out planned maintenance during the third quarter, thereby adjusting production and shipments to lower demand. SSAB Americas will start maintenance work earlier in the third quarter than previously planned.
Compared with the second quarter of 2024, SSAB Special Steels’ shipments are assessed to be lower during the third quarter, whereas prices are expected to be somewhat lower.
SSAB Europe’s shipments are assessed to be lower and also prices are expected to be lower during the third quarter of 2024 compared to the second quarter.
SSAB Americas’ shipments are assessed to be significantly lower and prices are expected to be lower.
The costs of raw materials are expected to be somewhat lower compared to the prior quarter.
| Q3 2024 vs. Q2 2024 | ||
|---|---|---|
| Shipments | Realized prices | |
| SSAB Special Steel | Lower | Somewhat lower |
| SSAB Europe | Lower | Lower |
| SSAB Americas | Significantly lower | Lower |
Definitions: Significantly lower (>10 %), Lower (5-10 %), Somewhat lower (0-5 %), Stable (~0 %), Somewhat higher (0-5 %), Higher (5-10 %), Significantly higher (>10 %)