Appliance, auto demand slows: US Steel

Integrated steelmaker US Steel expects appliance and automotive demand to slow.

Demand from the two industries, which make up large amounts of US steel consumption, has softened, it said. At the same time, energy business including line pipe has strengthened, chief executive David Burritt said.

US Steel's integrated mills produced 2.42mn short tons in the second quarter, a decrease of 2.5pc compared with the prior year. Utilization rates were at 74pc compared with 59pc in 2021.

At its electric arc furnace (EAF) flat-rolled Big River Steel mill in Arkansas, production was slightly up to 750,000st with utilization rates flat at 91pc.

The company's tubular business produced 168,000st, up by 47pc. Utilization rates were at 75pc, up by 24 percentage points.

In Slovakia, where US Steel operates an integrated mill, production fell by 4.9pc compared with the prior year to 1.22mn st. Utilization rates fell to 98pc from 103pc.

The average prices realized for US Steel's integrated and EAF mills were $1,339/st and $1,331/st, respectively, with integrated prices up by 24pc and the EAF price up by 10pc. Tubular prices rose by 67pc to $2,727/st year over year, while European pricing increased by 34pc to $1,217/st.

The company reported a $978mn profit in the second quarter, down by 3.4pc from $1.01bn in the prior-year period.

By Rye Druzin