US steelmaker AK Steel expects flat-rolled steel shipments to decline in 2019 because of the recently ended General Motors (GM) strike and lower order volumes.
The Ohio-based company said it expects flat-rolled shipments to decline by 5-6.7pc this year to 5.3mn-5.4mn short tons (4.8mn-4.9mn t), compared with 5.7mn st last year, because of lower consumption by GM and service centers.
Pricing for carbon hot-rolled coil (HRC) products, which make up 13pc of the company's sales, fell to an average of $510/st for October from $555/st in July, the company said. AK Steel's steel products are primarily coated, cold-rolled and electrical steels, which sell for a premium to HRC.
Steel shipments in the third quarter fell by 8.5pc year-over-year to 1.3mn st, while selling prices declined by 4pc to $1,067/st. In the nine monthsthrough 30 September, shipments fell 5pc to 4.1mn st compared with the 4.3mn st shipped in the same period of 2018. Selling prices stayed mostly flat year-over-year at $1,094/st through 30 September.
Market volatility from the GM strike and falling prices led the company to reduce its full-year profit outlook to a range of $26mn-$41mn, compared with the company's prior guidance of $41mn-$61mn.
Third-quarter profit fell to $2.8mn from $67.2mn a year earlier as sales fell by 12pc to $1.54bn.
