Steel Products
ThyssenKrupp Americas Sale Update
Written by John Packard
January 11, 2013
SMU has been asked about the status of the negotiations regarding the sale of the ThyssenKrupp Steel Americas assets. This includes ThyssenKrupp Steel USA and their sister facility in Brazil which produces slabs – CSA.
We understand the due diligence process continues and a number of mills have been through both facilities.
Based on SMU sources, there appear to be two groups vying for the portion of CSA not owned by Vale. The groups are reported to be CSN and a potential joint venture between Ternium/NSSMC (Nippon-Sumitomo). Our understanding is the relationship is stronger between Vale and Ternium than between Vale and CSN.
With ArcelorMittal able to pay down a portion of its debt, the mill becomes one of the potential leaders in the contest to acquire the TK USA assets. AM has a slab mill in Mexico and automotive expertise in North America. AM does not have a mill in the south.
Other companies actively involved are CSN (but they would need to buy CSA in order to supply slabs), US Steel (question about where the money comes from), Nucor (anti-trust an issue and do they align with another mill like AK Steel regarding automotive?), JFE, NSSMC.
A rumor is circulating that bids are due in February. What we have heard from TK conference calls is the company expects to make a decision by sometime during the second or early third quarter (calendar year) and close the sale by the end of the ThyssenKrupp fiscal year which we believe is the end of September.
John Packard
Read more from John PackardLatest in Steel Products
Rig count update: US activity stable, Canada slips
The number of oil and gas rigs operating in the US remained unchanged this week for the second consecutive week, while Canadian activity declined, according to the latest data released from Baker Hughes.
SMU market survey results now available
SMU’s latest steel buyers market survey results are now available on our website to all premium members. After logging in at steelmarketupdate.com, visit the pricing and analysis tab and look under the “survey results” section for “latest survey results.” Past survey results are also available under that selection. If you need help accessing the survey results, or if […]
Domestic, offshore CRC prices steady
The price spread between US-produced cold-rolled (CR) coil and offshore products on a landed basis was unchanged in the week ended Dec. 20.
SMU Survey: Mill lead times contract slightly, remain short
Steel mill production times have seen very little change since September, according to buyers participating in our latest market survey.
Worthington Enterprises’ earnings dip in fiscal Q2’25
Worthington Enterprises' profits edged down in its fiscal second quarter of 205 vs. a year earlier. The company said a slump in sales in the quarter was due largely to the "deconsolidation" of the Sustainable Energy Solutions segment in the fourth quarter of fiscal 2024.