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A Comparative Analysis of Steel Companies’ 4Q16 Shipments

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Steel shipments

It’s important for investors in the metals and mining space to follow quarterly production and shipment data. Steel companies’ revenues are a function of commodity prices and shipments.

Steel companies don’t have much pricing power due to the commoditized nature of their businesses. So, changes in shipments tend to determine how one company’s revenue changes compared to the others. In this article, we’ll look at different steel companies’ 4Q16 steel shipments.

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4Q16 steel shipments

  • ArcelorMittal (MT), the world’s leading steelmaker, shipped ~20.0 million metric tons of steel to outside customers in 4Q16. Its steel shipments rose 2.0% compared to 4Q15. Shipments fell ~1.0% compared to the sequential quarter.
  • Nucor’s (NUE) reported a 1.3% sequential decline in 4Q16 steel shipments. However, the company’s 4Q16 steel shipments rose 13.9% compared to 4Q15.
  • Steel Dynamics’s (STLD) 4Q16 steel shipments rose ~14.1% on a yearly basis to ~2.1 million tons. It reported the highest yearly increase in steel shipments among the companies that we’re covering.
  • U.S. Steel Corporation’s (X) shipments totaled ~3.8 million tons in 4Q16. U.S. Steel was the only steel company in our coverage of steel stocks that reported a sequential increase in 4Q16 steel shipments.
  • The falling trend in AK Steel’s (AKS) steel shipments continued in 4Q16. The company shipped ~1.4 million tons of steel in 4Q16, a yearly decline of 14.7%. Notably, AK Steel witnessed the biggest yearly decline in its 4Q16 steel shipments compared to the other companies that we’re covering in this series.

We saw a significant variation in steel companies’ 4Q16 steel shipments. In the next article, we’ll discuss why U.S. Steel was the only steel company to report a sequential increase in 4Q16 steel shipments.

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