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

Nucor keeps HRC price unchanged
Nucor paused its weekly hot-rolled (HR) coil price this week, keeping it flat for the first time since Jan. 21. This comes after a nine-week rally that saw the company increase prices by double-digits for eight of those weeks.

Nucor increases plate prices by $40/ton
Nucor aims to increase prices for steel plate by $40 per short ton (st) with the opening of its May order book. The Charlotte, N.C.-based steelmaker said the increase was effective with new orders received on Friday, March 28, in a letter to customers dated the same day. The company said the price hike applied […]

US CRC price gains ground over imports
US cold-rolled (CR) coil prices increased again this week, while offshore prices declined.

SMU Steel Demand Index momentum slows
Steel Market Update is pleased to share this Premium content with Executive members. Contact info@steelmarketupdate.com for information on how to upgrade to a Premium-level subscription. Growth in SMU’s Steel Demand Index eased in March after reaching a four-year high in late February. Despite a moderate gain, the index remains in expansion territory. The Steel Demand […]

Leibowitz: Impact of tariffs on US manufacturers
On February 10, President Trump announced a massive restructuring of tariffs on steel and aluminum. Those changes took effect on March 12, and they will impact US manufacturing. What will the impact be? Bye-bye exclusions Perhaps the most important change, which hits imports from all countries, is the loss of a product exclusion process to […]