U.S. Steel Reports Narrow 1st Quarter Loss, Demand Rising

United States Steel Corp. is seeing greater demand for steel, Manufacturing.net reports. The Pittsburgh manufacturer reported a narrower loss for the first three months of the year and said it expects to see continued improvement in the second quarter. It expects to increase shipments and bring in higher prices, although there will be some impact from higher raw materials costs.

U.S. Steel is the latest steel maker to note a gradual improvement in business after struggling through a difficult 2009 when recession-battered customers cut back on steel orders.

The results are an indication of both an improving global economy and a slow turnaround in the U.S., Argus Research analyst Bill Selesky said. He noted U.S. Steel is increasing production at some facilities. “They would not do that unless they thought they had a window here where demand was going up,” he said.

U.S. Steel reported a loss of $157 million for the quarter. In 2009, it lost $439 million. Revenue rose 42% to $3.9 billion from $2.75 billion for the quarter.

Prices for flat-rolled steel fell to $654 a net ton from $715 a net ton a year ago. But they improved from the fourth quarter.

Prices also fell year over year in U.S. Steel’s European operations and in the tubular business, which produces pipe products.

Yet company-wide, overall shipments jumped 67.5% from a year ago. The most recent results included a net tax benefit of $30 million which was offset by a deferred $27 million tax charge related to the health care reform law.

U.S. Steel said cost-cutting measures that it has taken in the past year have made operations more efficient.