As demand falls, U.S. Steel plans to idle furnaces

After announcing plans to idle two furnaces in the U.S. and another in Europe because of weak demand, premarket numbers are up for U.S. Steel. TheStreet reports:

U.S. Steel also said it expects adjusted earnings in the fiscal second quarter of about 40 cents a share, below analysts' forecasts of 51 cents, and second-quarter adjusted EBITDA of about $250 million, excluding $15 million of costs related to a fire at its Clairton coke making facility in December.

The company will take one furnace off line at its mill in Gary, Indiana, and another at its mill in Ecorse, Michigan.

Both furnaces are expected to remain idle for the remainder of the year, and the move is expected to decrease blast furnace production by about 200,000 tons. Flat-rolled steel shipments are expected to be about 11 million tons, below the company's forecast of 11.5 million tons. For more news on the domestic steel market, visit SNIPS' steel market reports page.

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Emell Derra Adolphus has more than a decade of writing and journalism experience. He is senior editor of ENR’s Top Lists and Survey Rankings at ENR magazine and frequently contributes stories on technology, climate resiliency, diversity, equity and inclusion.