Stelco Holdings Inc. said its steel shipments in the last three months of 2021 were less than expected and its first-quarter shipments could be lower than the fourth quarter's amid softer prices and weaker demand.
On the fourth quarter:
"The Company shipped approximately 625,000 net tons of steel in the fourth quarter of 2021, well below prior guidance of approximately 675,000-680,000 net tons," Stelco said.
"Shipments in the fourth quarter were negatively impacted by various production challenges, including unplanned outages on its hot strip mill, logistics challenges, and delays at the end of the fourth quarter brought on by the emergence of the Omicron variant which affected Stelco, its customers and logistics suppliers."
In the fourth quarter of 2020, a blast furnace upgrade project startup resulted in lower on-year shipments of 489,000 tons of steel, according to a report posted on the company's website.
On its first quarter:
Stelco said shipments in the first three months of 2021 are likely to be at or potentially lower than the fourth quarter's.
"The lower guidance for the first quarter is due to planned outages that have been advanced in response to the unplanned outages experienced in the fourth quarter, recent softer price environment and weaker demand conditions being experienced currently, as well as increased COVID-19 related disruptions with respect to labour force availability, which is impacting production, logistics and customer demand."