Shipments from flat rolled segment to grow significantly in Q3 '14: US Steel

ALBANY (Scrap Monster): According to US Steel, operating inefficiencies due to bad weather conditions and operational issues has impacted the company’s performance in Q2 ’14. However, it maintains a positive outlook for Q3. US Steel expects significant improvement in performance during the third quarter of the year.

The improved market conditions in North America had resulted in better average realized price during the second quarter. But the company was unable to tap the favorable market conditions to the fullest due to continuing operating inefficiencies.

US Steel noted that its flat rolled business segment achieved average realized price of $774 per NT in Q2 2014. The average realized price was 1.7% higher over the previous quarter and 6.8% higher when compared with the same quarter last year. But this was completely offset by higher repairs and maintenance costs. In addition, logistical issues resulted in lower shipment during Q2 ’14.

The company expects a major turnaround during Q3. The average realized prices may remain consistent with the second quarter. But shipments from flat rolled product segment are poised to record significant growth during Q3.