US Steel anticipates keeping its three idled blast furnaces offline through the rest of 2019 amid weak market sentiment for flat-rolled steel products.

Falling steel prices in the second quarter, coupled with steeper declines in scrap, will pressure flat-rolled steel earnings in the second half of 2019, according to the company.

US Steel now expects flat-rolled product shipments to total 10.7mn st this year, down from a prior outlook of 11mn st.

US Steel will also continue reforms to its operations to line up with demand. Three blast furnaces in Michigan, Indiana, and Slovakia were idled in June in response to soft market conditions.

US hot-rolled coil (HRC) prices fell to an average of $577/st ex-works Midwest for the third quarter of 2019 to date, down from $630/st in the second quarter 2019. The Argus US HRC assessment averaged $875/st in the third quarter of 2018.

The company reported continued weakness in its European divisions concurrent with widening spreads between steel sales prices and raw material costs. Amid high volumes of imported steel and market conditions, the company does not expect to restart the Slovakia mill in 2019. US Steel will cut 1,800 of 2,500 positions by 2021 in Europe.

Shipments to European customers are anticipated at 3.6mn st.

The company flagged expected shipments of tubular products to fall to 700,000st amid deteriorating market conditions and high import levels. Weak demand for oil country tubular goods, and lower prices for seamless and welded pipe will negatively impact second half earnings.

US Steel expects to post a loss in the third quarter following a profit of $68mn in the second quarter.

The company released its guidance the same week as Nucor and Steel Dynamics released guidance reports for declining profits in the third quarter. A global recycler Sims Metal Management also noted a drop in profits amid a downturn in the global scrap trade.