Stelco Holdings Inc. said that steel shipments in the last three months of 2021 were less than expected and that first-quarter shipments could fall below fourth-quarter due to softer prices and weaker demand.
In the fourth quarter:
"The company shipped about 625,000 net tons of steel in the fourth quarter of 2021, well below the previous guidance of about 675,000-680,000 net tons," Stelco said. said.
“Fourth-quarter shipments were negatively impacted by several production difficulties, including unplanned outages at the hot rolling mill, logistical difficulties, and delays at the end of the fourth quarter resulting from the emergence of the Omicron variant affecting Stelco and its customers.
According to a report published on the company's website, the launch of a blast furnace upgrade project in the fourth quarter of 2020 resulted in a decrease in annual steel shipments of 489,000 tons.
In the first quarter:
Stelco says shipments in the first three months of 2021 will likely be at the same level or potentially lower in the fourth quarter.
“The lower hold for the first quarter appears to be due to the planned outages developed in response to the unplanned outages in the fourth quarter, the softer price environment recently and the weaker demand conditions currently being experienced, as well as increased COVID-19 related outages. on the other hand, it seems to be related to production, logistics and workforce availability affecting customer demand.”
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