Swedish company SSAB sees signs of an improving supply-demand balance in the European steel market. Prices rose in the third quarter, supported by new EU trade measures that took effect on July 1, the company said on October 28 as it presented its third-quarter results.
SSAB expects actual selling prices at its steel divisions to be somewhat higher in the fourth quarter than in the previous quarter. At the same time, the company’s costs are rising.
SSAB Europe deliveries are forecast to increase by 5–10% in the fourth quarter compared with the previous quarter. Deliveries at SSAB Americas are expected to remain roughly unchanged, while those at SSAB Special Steels may decline by up to 5%. Raw material costs are expected to rise somewhat. Other variable costs, including transportation and energy, will remain high.
The forecast reflects differences in conditions across regional markets. In Europe, steel demand remained subdued in the third quarter, but lower imports following the introduction of new EU trade measures improved the supply-demand balance and helped lift prices for sheet and strip. In North America, the flat steel market remained strong: prices rose, while distributor inventories were relatively low.
SSAB’s crude steel output rose 5% year over year to 1.90 million metric tons, while rolled steel production increased 7% to 1.705 million tons. Steel deliveries rose 4% to 1.530 million tons. However, all three figures were down from the second quarter due to scheduled maintenance and a seasonal slowdown in demand. Deliveries of specialty steel rose 9% year over year to 314,000 tons, while SSAB Europe shipments increased 4% to 770,000 tons.
SSAB confirmed key timelines for its emissions-reduction projects. The electric arc furnace in Oxelösund is scheduled to begin operating in the second quarter of 2027. Construction of the new mini-mill in Luleå is on schedule and within budget, with commissioning planned for the end of 2029. The timing of the subsequent modernization of the Raahe plant will depend on raw material availability, financing options, market conditions and experience gained from the previous projects.
The company lowered its forecast for maintenance costs and strategic capital expenditure in 2026 from SEK 13.5 billion to SEK 11.2 billion. SSAB attributed the change to a revision of the timing of payments to suppliers, not to project delays.
Author: Annalisa Villa
