The American company US Steel in the first quarter of 2019 significantly increased its production and sales of steel in the United States. The company’s bottom line was affected by higher raw material prices and previously perceived customer service issues.
The Pennsylvania-based company increased shipments of flat products to 2.7 million tonnes, up 7.5% year-on-year. Production of flat products increased to 3.08 million tonnes. In the first quarter of 2018, this figure was 10.5% less.
US Steel’s profit for the first quarter of 2019 increased to $ 54 million, while the metallurgical capacity utilization of the enterprise decreased to 73%. This was influenced by the easing of import duties, which were introduced last year under the US Trade Expansion Act.
The average selling price of flat products of the company in the first 4 months of this year was $ 798 per 1 ton. This is 7.8% more than in the 4th quarter of 2018.
US Steel cut production and supplies of metallurgical raw materials in Europe. The company’s enterprises are located in Slovakia. Statistics show that the enterprise in the 1st quarter of 2019 reduced steel production by 10% – to 1.16 million tons. Deliveries of products decreased by 5.6% – to 1.06 million tons. The metallurgical capacity utilization in the European segment of the company was 94%. In Europe, flat steel prices fell by 5.2% to $ 670.