Companhia Siderúrgica Nacional, one of Brazil's largest steel producers, had a strong performance in the third quarter of 2024, despite facing several challenges in the global and domestic markets. CSN’s results showed significant growth across all business segments, marking a new milestone in both production and sales. The company posted an Adjusted EBITDA of R$ 2.3 billion, with a margin of 19.7%, driven by improved operational efficiency and higher sales volumes. This achievement highlights CSN’s ongoing pursuit of operational excellence, which has helped offset some of the pressures on earnings, especially in its mining segment.
One of the key highlights of CSN’s Q3 2024 performance was the strong results from the steel segment. Despite weaker price dynamics and some deterioration in the product mix, CSN achieved a 9% increase in domestic sales. This increase in steel sales, combined with higher production levels and better fixed-cost dilution, helped CSN improve its EBITDA for the steel segment to R$ 388.5 million, with an EBITDA margin of 6.4%. This was a slight improvement over the previous quarter, signaling a steady recovery in the steel industry despite ongoing pricing pressures. While the price of steel remained under pressure, particularly in the face of global economic uncertainty, CSN’s ability to increase its domestic market share helped stabilize the segment’s performance.
In the cement segment, CSN continued to outperform expectations, achieving another commercial record in 3Q24. The company capitalized on favorable weather conditions and strong market dynamics to boost both production and sales. Efficient logistics and distribution optimization played a crucial role in enhancing profitability. Cement sales were particularly strong, contributing to a rise in EBITDA to R$ 350 million. With a stable price environment and reduced production costs, the cement segment maintained a solid EBITDA margin of 28%, outperforming many of its competitors in the sector. This ongoing strength in the cement market helped offset some of the challenges CSN faced in other segments, contributing to the company’s overall positive financial results.
The mining segment also posted strong results, with CSN achieving its highest-ever sales volume in 3Q24, shipping a total of 11.9 million metric tons of iron ore. This record-breaking performance was supported by higher production levels, which allowed for greater operational efficiency. Additionally, the company’s cost per ton of production, C1, dropped to its lowest level in recent years, reaching US$19.2 per metric ton. Despite these positive operational metrics, the mining segment faced pressure due to lower iron ore prices and still-high freight costs, which impacted the overall results. Nonetheless, CSN’s Adjusted EBITDA for mining was R$ 1.1 billion, with a healthy EBITDA margin of 37.6%, reflecting the company’s ability to generate significant cash flow from its mining operations.
CSN also focused on managing its financial leverage efficiently in 3Q24. The company demonstrated strong cash flow management, which allowed it to reduce its leverage by 2 basis points during the quarter. This reduction in debt levels is part of CSN’s broader strategy to strengthen its financial position and reduce financial risk. The company has been taking steps to reduce its debt further, with the recent sale of a significant stake in its subsidiary, CMIN, CSN Mining, seen as a key step in this direction. This proactive approach to debt management is crucial as CSN navigates the challenges of global economic uncertainty and volatile commodity prices.
Despite the pressures on its earnings, CSN remains optimistic about its future prospects. CEO Benjamin Steinbruch expressed confidence in the company’s ability to improve performance in 2025, particularly as the company positions itself for a more favorable market scenario. In the mining sector, CSN’s increase in production and sales bodes well for future growth, while efforts to streamline costs and optimize operations will continue to improve the company’s competitiveness. The company’s ability to achieve record sales and maintain operational efficiency, even in a challenging economic environment, underscores its resilience and capacity for long-term growth.
Looking ahead, CSN’s strategy remains focused on expanding its market share, reducing costs, and optimizing its operational processes. The company’s efforts to strengthen its financial position, coupled with its achievements in production and sales across all segments, suggest that CSN is well-prepared to face the challenges and opportunities that lie ahead. With a robust portfolio of assets and a strong commitment to operational excellence, CSN is positioning itself as a leader in the Brazilian and global steel industry, with the capacity to generate sustainable growth in the years to come.
