US Steel expects steel demand to remain under pressure for the rest of 2022 before improving next year, particularly among automakers.
Chief executive David Burritt said demand constraints will continue in the fourth quarter.
"We expect flat to maybe slightly up shipments in the fourth quarter versus the third quarter," Burritt said. "For appliance, [it is] impacted by consumer sentiment, and we saw some slowdown in shipments in the third quarter. Service centers and industrial construction [are conducting] cautious buying."
Burritt called construction demand "resilient" and the energy market a bright spot for US Steel. The company's tubular division produced 173,000 short tons of steel in the third quarter, up by 48pc from the prior year while operating at a 76pc utilization rate, an increase of 24 percentage points.
For 2023, Burritt pointed to improved expected automotive demand.
"We're encouraged by feedback from the automotive negotiations and optimistic there's pent-up automotive demand, and build rates will be higher next year," he said. "Automotive customers already signaling higher steel consumption in 2023."
The energy market is expected to remain strong, while Burritt expects US Steel can grow its market share in the appliance industry.
