US Steel Kosice reduced steel production by 12.8% y/y in 2024

Slovakian steelmaker US Steel Kosice (USSK), a subsidiary of US Steel, reduced steel production by 12.8% in 2024 compared to 2023 – to 3.83 million tons (net ton). This is stated in the company’s report.

Shipments of steel products for the year amounted to 3.58 million tons, down 8.2% y/y. These are the lowest volumes of steel sales to customers since 2020, in particular:

• 2020 – 3.04 million tons;
• 2021 – 4.3 million tons;
• 2022 – 3.76 million tons;
• 2023 – 3.89 million tons.

Hot-rolled coils (HRC) accounted for the largest volume of steel shipments last year, accounting for 60%. Cold-rolled flat products (CRC) accounted for another 10%, coated products for 20%, semi-finished products for 5%, and tin for 5%. The main consumers are: the construction industry – 34%, the automotive industry – 16%, and service centers – 25%.

Average product prices in 2024 declined and are the lowest since 2020 at $805/t (-7.8% y/y).

In the fourth quarter, US Steel Kosice produced 803 thousand tons of steel, the lowest quarterly figure for the year (-17.2% q/q; -25.6% y/y). Product shipments for the period fell by 18.6% q/q and 31.7% y/y – to 732 thousand tons. Average steel prices stagnated throughout the year, including $830/t in Q1, $821/t – in Q2, $802/t – in Q3, and $751/t – in Q4.

Currently, the company operates two blast furnaces at its Kosice plant – BF No. 1 and No. 2. BF No. 3 is idle (1.7 million tons of steel per year). The total capacity of the plant is 5 million tons of steel per year.

USSK finished 2024 with a loss of $54 million, while in 2023 it showed a minimal profit of $4 million. The main reasons for the negative financial result were low demand for steel, falling product prices, rising energy costs and CO2 emissions. EBITDA fell to $71 million (-27.5% y/y), in particular due to a significant decline in the fourth quarter (-$35 million).

The company expects a gradual recovery in steel demand in Europe and stabilization of energy markets. It also plans to optimize costs and improve production efficiency to return to profitability in 2025.

As GMK Center reported earlier, US Steel Kosice produced 4.39 million tons of steel in 2023, up 14.5% y/y. The company’s steel shipments increased by 3.7% y/y – to 3.899 million tons. The average selling price fell by 19.9% y/y – to $873 per tonne.