- Q1 net sales MSEK 7,907 (9,622) and operating profit MSEK 860 (3,638); sales volumes 6.3 Mt (6.5 Mt).
- Market headwinds: weaker USD, pellet premiums about USD 7/t lower, and higher energy costs; average iron ore spot price USD 104/t (Q1), USD 108/t at quarter end.
- Closure of the Strait of Hormuz disrupted transport, causing regional delivery challenges and risking a Q2 delivery shortfall if it continues.
- Changed local geotechnical conditions in the Kiruna mine will cut production and are expected to cause an approximately 2 Mt delivery shortfall in 2026.
Financial results
Net sales for Q1 2026 were MSEK 7,907 (9,622) and operating profit MSEK 860 (3,638); delivered sales volumes were 6.3 Mt (6.5 Mt).
Market and pricing
Weaker USD, lower pellets premiums (about USD 7/t below last year) and higher energy costs reduced revenues; the global spot price averaged USD 104/t in Q1 (USD 108/t at quarter end).
Logistics and production disruptions
Closure of the Strait of Hormuz caused delivery challenges for customers in the Middle East and risks a Q2 delivery shortfall if it continues; production was stable in the quarter at 6.5 Mt (6.6 Mt) but is expected to decline due to changed local geotechnical conditions in the Kiruna mine.
Outlook
The Kiruna production adjustments are expected to create an approximate 2 Mt delivery shortfall in 2026; management stresses flexibility, dialogue with affected customers and focus on controllable factors to mitigate impacts.
