SSAB’s working revenue throughout Q3, 2022 rose in comparison with the identical interval in 2021, regardless of a weak European market. This was supported by a robust efficiency from each SSAB Particular Steels and SSAB Americas divisions.
The corporate succeeded in partnering with a US speciality vans producer, making it the primary fossil-free metal deal within the American market.
This strengthens SSAB’s place as one of many leaders in transitioning the worldwide metal business to a extra sustainable mannequin and helps in direction of reaching its 2030 inexperienced metal merchandise goal.
SSAB Particular Steels’ working revenue elevated to SEK 2,411 million for the quarter, up from SEK 995 million in Q3, 2021. The working margin rose to twenty-eight.6% (16.6% – Q3, 2021).
SSAB Europe’s working revenue for the third quarter dropped to SEK 1,447 million from SEK 2,524 million for a similar interval final 12 months. The working margin additionally was right down to 12.1% (23.4% – Q3, 2021).
SSAB America’s working revenue elevated to SEK 3,036 million (SEK 1,882 million – Q3, 2021) and the working margin rose to 36.6% (31.1% – Q3, 2021).
An vital well being and security metric for the metal business is Misplaced Time Damage Frequency (LTIF), which SSAB’s group insurance policies and procedures managed to decrease to 1.15 (1.90 – Q3, 2021).
Metal market projections
SSAB has lowered its projected metal manufacturing volumes as a result of weak spot within the European market. It has chosen to carry ahead scheduled upkeep at its Raahe blast furnaces to cut back capability, starting in November 2022.
The group can also be endeavor feasibility research for mini mills in Raahe and Luleå. In Q3, 2022 noticed Volvo Vehicles start funding in heavy electrical vans comprised of SSAB fossil-free metal.
SSAB’s Particular Steels and SSAB Americas divisions’ projections stay regular as demand for fossil-free steels continues to rise, whereas a partnership with American truck specialist Oshkosh Company will see the event of business autos manufactured with SSAB’s fossil-free metal.
The corporate’s drive for full fossil-free metal manufacturing by 2030 wants there to be a lot better availability of inexperienced electrical energy, which can also be key to offering a degree taking part in discipline throughout Europe concerning state assist for the transition to, and achievement of, zero carbon objectives.
SSAB This fall, 2022 outlook
The European market is anticipated to stay weak into the brand new 12 months, because the spectre of rising inflation, shortages of elements and the continued dangers from international conflicts, together with the struggle in Ukraine, solid a heavy shadow on the way forward for international metal markets.
Metal costs, in addition to a decrease quantity of shipments of SSAB Particular Steels (because of a upkeep outage in Oxelösund) shall be delicate as in contrast with Q3, 2022. Metal shipments from SSAB Americas are anticipated to rise because the deliberate upkeep outage in Q2, 2022 has been carried out, and manufacturing ranges are regular.
Nonetheless, whereas the US heavy plate market stays comparatively steady, costs are anticipated to fall, regardless that prices for uncooked supplies in This fall, 2022 will stay aggressive.
Deliberate outages for upkeep in 2022
Upkeep prices for 2022 for SSAB Group are anticipated to rise to SEK 1,590 million, greater than the earlier forecast of SEK 1,210 million, as Raahe’s blast furnace upkeep has been moved as much as November 2022, as beforehand said. The general enhance in costs for items and companies internationally is one other issue for the upper prices.
The state of the metal business in Q3, 2022
There was robust demand for high-strength metal in most markets, however demand in Europe fell owing to a softer-than-expected financial outlook, whereas China’s calls for dropped because of varied closures throughout its many lockdowns.
Stock held by stockists and distributors, and exports to European prospects had been moderately excessive throughout the interval, however pricing dropped throughout the area, extra in heavy plate than strip.
Demand for heavy plate merchandise was wholesome within the US owing to softer pricing, however stock ranges had been low owing to deliberate upkeep in Q2, 2022.
Income and working revenue particulars
Income for Q3, 2022 was SEK 31,516 million (SEK 25,220 million – Q3, 2021), up 25% in comparison with the third quarter of 2021, off the again of upper international metal costs; income was down 11% towards Q2, 2022.
Working revenue was SEK 6,742 million (SEK 5,800 million – Q3, 2021), once more because of greater costs.
The tables beneath element how divisions carried out, and income and working revenue adopted by the full change in income and working revenue.
Fossil-free metal manufacturing goal
In distinction to direct lowered iron (DRI) produced utilizing a fossil-based lowering fuel, resembling pure fuel, current take a look at outcomes from the HYBRIT pilot plant in October 2022 confirmed that DRI with hydrogen produces a product with superior mechanical and ageing qualities. Purposes for patents have been submitted to the European Patent Workplace by HYBRIT Improvement AB.
SSAB’s said goal date for fossil-free metal manufacturing is 2030, however this transformation requires a big provide of inexperienced electrical energy. The applying for 2 130 kV electrical energy strains to the SSAB metal manufacturing facility in Oxelösund was accepted by the Swedish Vitality Markets Inspectorate in October. The applying and its subsequent resolution could also be challenged.