[ferro-alloys.com] Sweden's largest steel producer, SSAB, said Friday that global steel demand in the third quarter was unchanged from the second quarter, but said the fourth quarter promises improving demand led by economic recovery in the US.

SSAB said Friday that Q3 crude steel production was little changed compared with the previous quarter, but up 25% year on year.

It said Q3 shipments were unchanged compared with the previous quarter, although ahead of the same period a year ago. SSAB said that month on month the product mix changed slightly in favor of a higher percentage of standard steels as demand for niche products within the mining industry and construction machinery weakened.

 

It said gradual recovery in the US was beginning to have an effect on steel demand and to an extent it had been possible to carry out previously announced price increases in the third quarter.

"The trend as regards the European economy was unchanged during the quarter," SSAB CEO Martin Lindqvist said.

"The Chinese economy continues to grow, but we can note that our major customers still hold large stocks," which he said had hurt demand.

The Swedish company said it expected demand to pick up and had adjusted prices accordingly.

"During the fourth quarter, we expect that the US economic recovery will have a positive impact on demand for steel," Lindqvist said.

He said steel demand and prices in Europe were unlikely to change, while in Asia the company expects growth.

SSAB posted Q3 total crude steel production of 1.364 million mt, down slightly from 1.389 million mt in the previous quarter, but up 25% from 1.091 million mt for the third quarter last year.

Crude steel production in the US totaled 632,000 mt in the third quarter, up from 540,000 mt in the same period last year.

Output in Europe was also ahead year on year, up to 732,000 mt from 551,000 mt.

SSAB reported a Q3 net loss of SEK520 million ($82.2 million) compared with a net loss of SEK519 million for the same period last year.