Interim report Q3 2024: Special Steels stable in a weak market, transformation on plan

Comments by the CEO

SSAB’s operating result for the third quarter of 2024 amounted to SEK 1,248 (4,371) million. Maintenance cost amounted to SEK 950 million in the quarter, in line with forecast. Lower US plate prices impacted negatively compared to a year earlier. The market in Europe continued to be weak, whereas the market for high-strength steel was more resilient. Compared to the second quarter, the lower operating result was due to weaker demand and planned maintenance outages.

SSAB Special Steels had an operating result of SEK 1,228 (1,808) million and an operating margin of 18% (23%) during the quarter. SSAB Special Steels’ unique offering provides added value for our customers and this in turn translates into more stable prices than for standard products. SSAB Americas’ operating result for the third quarter decreased to SEK 78 (2,653) million and the operating margin was 2% (35%), due to lower prices and planned maintenance outages. SSAB Europe's operating result was SEK 42 (254) million and the operating margin was 0% (2%).

Safety performance continued to improve and LTIF decreased to 0.82 (0.94) during the quarter.

The market in Europe was weak during the third quarter and the plate prices in the US weakened further. During the fourth quarter, SSAB will carry out planned maintenance in Oxelösund and Raahe. Further adjustments to the low demand will take place in the steel divisions within the framework for flexible working hours and a restrictive approach to costs. The market remains challenging also for Tibnor and Ruukki Construction, but earlier measures to reduce costs had a positive effect in the third quarter.

The transformation to fossil-free steelmaking continues according to plan with a focus on the conversion of Oxelösund and the planning of the state-of-the-art, highly-effective mini-mill in Luleå. The new mill in Luleå will reduce production costs while increasing the share of premium products, strengthening SSAB's long-term competitiveness.

The new direct reduction technology using hydrogen under development by HYBRIT is well positioned for an industrial scale, which lays the foundation for a flexible mix of fossil-free sponge iron and recycled scrap as raw material for the new mills in Oxelösund and Luleå in the long-term. The HYBRIT pilot plant in Luleå has to date produced more than 5,000 tonnes of hydrogen reduced iron and pilot volume of fossil-free steel is being used by several customers including Volvo Group, Epiroc and Peab.

SSAB invites you to a presentation of the Q3 2024 report at 9.30am CEST on Wednesday, October 23, 2024.

The report will be presented by SSAB’s President and CEO Martin Lindqvist, and CFO Leena Craelius.

The press conference will be held in English and live webcast on SSAB’s website www.ssab.com.
Link to webcast: https://edge.media-server.com/mmc/p/udknwkbc

You can also participate in the briefing by telephone. Click on the link below and complete the online registration form. You can choose if you want to dial in or click “Call Me” for a call-back.
Link to teleconference: https://register.vevent.com/register/BI96633f828f9b497cadadd79dffd41c0e

For further information, please contact:
Per Hillström, Head of Investor Relations, [email protected], phone: +46 702 95 29 12
Viktoria Karsberg, Head of Corporate Identity and Group Communications,
[email protected], phone: +46 72 233 5288

This information is inside information that SSAB AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and information that SSAB AB (publ) is obliged to make public pursuant to the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 7.30am CEST on October 23, 2024.