Nucor reported a decline in financial results as expected for the third quarter of 2019. Net earnings were $275 million, down from $386.4 million in Q2 and $676.7 million in Q3 2018. Consolidated net sales fell 7 percent from the previous quarter to $5.46 billion. Steel shipments to outside customers declined 7 percent from last […]
Even after selling nearly half the company to U.S. Steel, Big River Steel intends to move ahead with its plans for a new EAF mill in Brownville, Texas, according to comments from CEO Dave Stickler to S&P Global Platts. Stickler said that a development company has been formed called Brownsville Investment Group LLC to handle […]
Steel Dynamics CEO Mark Millett enthusiastically spoke of the new steel mill planned for Sinton, Texas, during the company’s third-quarter earnings call. “We are excited about our Sinton, Texas, flat roll steel mill project, and the associated long-term value creation it will bring through geographic and value-added product diversification. This facility is designed to have […]
Commercial Metals Co. has shut down the melt shop at its steel rebar mill in Rancho Cucamonga, Calif., citing restrictive regulations and low-cost competition. “The burdensome regulatory environment and cost of doing business in California has put the Rancho Cucamonga melt shop at a severe cost disadvantage in the highly competitive rebar market,” said CMC […]
NLMK USA’s sales fell 6.0 percent to 549,000 metric tons in the third quarter of 2019 compared to the second quarter, said NLMK Group in a trading update today. Declining volume was the result of decreased HRC sales due to lower demand from the tube and pipe sector. Shipments of hot-dipped galvanized (HDG) also decreased […]
U.S. Steel unrolled a new operating model on Tuesday that is expected to deliver $200 million of annual fixed cost savings by 2022. The new model includes a realignment of the company’s leadership team. The changes will be effective Jan. 1, 2020, and closely follow the recently announced investment in Big River Steel. “Our enhanced […]
U.S. Steel released preliminary third-quarter 2019 results, revising its earnings guidance upward to an adjusted net loss of $35-$45 million or $0.20-$0.25 per diluted share. Previous guidance estimated a net loss of around $0.35 share. U.S. Steel said stronger shipments and better than expected performance by its flat-rolled segment drove the adjusted outlook, as well […]
Liberty Steel USA will get a new $25 million electric arc furnace at its Georgetown, S.C., rolling mill next year. Georgetown’s aging EAF has an annual capacity of 500,000 metric tons, but actual production has fallen far short of that amount. “We have a very efficient rolling mill at Georgetown and we now want to […]
JSW USA has filed a challenge to a tariff exclusion denial with the U.S. Court of International Trade. In the first tariff exclusion case to reach the USCIT, JSW claims that Commerce ignored evidence presented regarding the domestic availability of steel slab. The company is requesting a refund of the tariffs it was required to pay. […]
With U.S. Steel buying almost 50 percent of Big River Steel and holding an option on the remainder over the next four years, SMU thought it an appropriate time to review the list of announced changes being made by the mills in the United States, Canada and Mexico. We reviewed this listing with the four […]
By CRU Principal Analyst Josh Spoores and Analyst Ryan Smith U.S. Steel has announced a 49.9 percent stock acquisition with an option to acquire the remaining 51.1 percent within the next four years, in smaller rival U.S. flat products new entrant Big River Steel. In its announcement, U.S. Steel labelled this acquisition, alongside its investment […]
EVRAZ NA President “Skip” Herald is the newest addition to the American Iron and Steel Institute Board of Directors. “Skip Herald has had an impressive career, and I am excited to welcome him to the AISI Board of Directors,” said AISI Chairman and AK Steel CEO Roger Newport. “Skip’s wealth of experience will be an […]
Steel Market Update reported in the last issue on the sudden closing of Bayou Seel in Louisiana, and a few readers took issue with some comments in the article (Trade War Contributes to Bayou Steel’s Demise). In statements that were widely reported, Gov. John Bel Edwards blamed the closure on the Trump administration tariffs. The […]
A new solar project in Pueblo, Colo., will bring the state one step closer to its goal of providing 100 percent carbon-free electricity by 2050 and give EVRAZ Rocky Mountain Steel predictable electricity prices through 2041. The 240-megawatt Bighorn Solar project will be built, owned and operated by Lightsource BP on property owned by EVRAZ […]
U.S. Steel announced today it will acquire a 49.9 percent ownership interest in Big River Steel at a purchase price of $700 million with the intent to acquire the remaining shares within the next four years. U.S. Steel has committed financing to execute the transaction. The implied enterprise value of Big River is approximately $2.325 […]
The news today that U.S. Steel plans to purchase a 49.9 percent interest in Big River Steel, with an option to buy the rest within the next four years, surprised the market. But most of the steel buyers polled by Steel Market Update view the pairing of one of the nation’s oldest integrated producers with […]
Merchant bar producer Bayou Steel in LaPlace, La., closed its doors without warning on Sept. 30, putting 376 stunned employees out of work. A letter to parish and state workforce officials cited “unforeseen business circumstances” and a lack of financing as reasons for the closure. The plant operates an electric arc furnace turning scrap metal […]
Mexican steel producer AHMSA is seeking a way out of its financial difficulties including a possible sale of the company, according to various press reports. Altos Hornos de México is recovering from a corruption scandal that rocked company finances and coincided with a downturn in market conditions. Board of Directors President Alonso Ancira was accused […]
The Canadian Steel Producers Association has appointed Algoma Steel CEO Michael McQuade as Chairman of the Board of Directors. McQuade was appointed CEO of Algoma in March 2019. Prior to assuming the leadership role at Algoma, McQuade accumulated more than 35 years of experience at Stelco Inc. He moved through a variety of roles at […]
Worthington Industries reported net sales of $855.9 million, a 13 percent year-over-year decline, and a net loss of $4.8 million for its fiscal 2020 first quarter, driven by lower volume and lower average selling prices in steel processing. Worthington was also hit by a pre-tax impairment and restructuring charge of $43.5 million primarily related to […]
Members of the United Auto Workers at AK Steel Coshocton Works ratified a new 46-month labor agreement on Sept. 20. The agreement covers approximately 300 hourly production workers and maintenance employees at the facility and will be effective until July 31, 2023. “We appreciate the work of the Union leadership with our management team to […]
U.S. Steel is feeling the pain of falling steel prices and deteriorating market conditions. The company expects an earnings loss of 35 cents per diluted share for the third quarter of 2019 compared to a profit of 39 cents per share in the second quarter. The company followed Nucor and Steel Dynamics in lowering guidance […]
Steel Dynamics is expecting earnings to drop in the third quarter due to lower profits from its steel operations. Lower scrap prices were not enough to offset lower shipments and declining steel pricing. The steelmaker expects earnings in the range of $0.66 to $0.70 per diluted share compared to $0.87 per share in the second […]
Nucor expects a weaker performance from its steel mills segment in the third quarter due to lower prices for sheet and plate steel. “Although we still see stability in most of the end-use markets that we serve, there has been some softening in automotive, agricultural products and power transmission markets,” said the company in guidance […]
By CRU Analyst Ryan Smith Operating costs for flat-rolled minimill producers have dropped in 2019 as weaker steel markets have pulled down metallics prices. This has meant that operating costs for minimills are now in line with integrated producers in the USA. However, the current cost level is not expected to be maintained. (See related […]
By CRU Senior Analyst Ryan Smith Most people believe that minimills, which remelt scrap in electric arc furnaces, have a big cost advantage over integrated mills, which feed ore and coking coal into giant blast furnaces. But such conventional thinking is an oversimplification of the cost comparison. Based on site costs alone, and where steelmaking […]
A number of maintenance outages are scheduled at U.S. steel mills in the coming months with the majority to occur in October. Blast furnaces at AK Steel Dearborn, ArcelorMittal Cleveland and Burns Harbor, and U.S. Steel Gary Works are scheduled for maintenance in October, representing an estimated 495,050 tons of steel capacity temporarily removed from the […]
Nucor Corp. has announced a change in leadership as part of its planned succession process. John J. Ferriola, 67, will retire as Chairman and Chief Executive Officer on Dec. 31. Leon J. Topalian, 51, was named President and Chief Operating Officer, effective Sept. 5, and will succeed Ferriola as CEO on Jan. 1, 2020. Ferriola […]
The remaining days for AK Steel Ashland Works are numbered. Employees received final notices on Tuesday from AK Steel regarding the permanent shutdown of the Ashland plant scheduled for Dec. 31. The letter from the company sent to about 260 employees states: “As you know on Jan. 28, 2019, AK Steel announced its plans to […]
Nucor has received more than 2,300 applicants for 250 positions at its $400 million steel plant in Sedalia, Mo. The rebar plant is expected to open in November. Jessica Craig, Sedalia-Pettis County economic development executive director, says 153 employees have already been hired, some coming from as far away as Columbia and Kansas City, more […]