US Steel Kosice expects a decline in key indicators in Q2

The negative forecasts are explained by the long downtime of blast furnace No. 2 due to weak demand for steel

Slovakian steelmaker US Steel Kosice (USSK), a subsidiary of US Steel, expects a decline in key performance indicators in the second quarter compared to the first quarter. This is reported by Kallanish with reference to the company’s data.

The company’s EBITDA and steel shipments are expected to decline in Q2 compared to the previous quarter due to the downtime of blast furnace (BF) №2 for most of the reporting period. The blast furnace was recently restarted in response to improved demand and prices for steel products, but the lost production volumes will not be recovered.

Blast Furnace №2 at US Steel Kosice was shut down in early March for scheduled maintenance. The launch was postponed due to low demand for steel in Europe and falling prices.

It should be noted that US Steel Kosice increased steel shipments by 21.4% year-on-year – to 1.07 million short tons in the first quarter of 2024. Steel production volumes increased by 1% y/y – to 1.08 million short tons, ensuring 87% capacity utilization. The division’s net sales increased by 10% year-on-year – to $925 million.

As GMK Center reported earlier, US Steel Kosice produced 4.39 million tons of steel in 2023, up 14.5% y/y. The plant’s steel shipments increased by 3.7% y/y – to 3.899 million tons.

US Steel Kosice is equipped with three blast furnaces with a total capacity of 5 million tons of pig iron per year. The plant specializes in the production of hot-rolled, cold-rolled and hot-dip galvanized coils.