US Steel’s Q3 results were announced on 28 October. The company made a loss of US$1.79 billion compared to a profit last year of US$44 million. The bulk of the loss was down to a goodwill impairment charge of US$1.8 billion during the quarter. Steel shipments also declined and average realised prices for tubular products were lower because of industry over-capacity and a higher amount of imports.
While the flat-rolled division profited to the tune of US$82 in Q2 2013, income in Q3 was US$29 million. Lower repairs and maintenance costs were responsible for the boost in Q2 profits.
In Europe the company went from a US$27 million profit in Q3 2012 to a US$32 million operational loss in Q3 2013. Lower prices and increased maintenance, repairs and other operating costs were to blame.
The company’s tubular goods division achieved income of US$49 million this year compared to profits of US$102 million in 2012 due to lower average realised prices and decreased shipment volumes.
In the flat-rolled division, the average realised price per tonne increased from US$741/tonne to US$752/tonne but decreased from US$731/tonne to US$714/tonne in Europe and from US$1,676 to US$1,543 in the tubular goods division. Higher spot prices led to marginally increased flat-rolled prices. Tubular steel prices were down due to rising imports and overcapacity.
In fact, OCTG imports have come under government scrutiny of late and anti-dumping duties are likely to be imposed in February 2014. Imports of OCTG steel totalled US$1.8 billion in 2012 and eight countries – India, Vietnam, Philippines, Thailand, Taiwan, Turkey, Saudi Arabia and Ukraine – are currently under US Government investigation.