More complications for Essar Steel Algoma as it nears a deadline to emerge from the CCAA protection. Union disputes and lawsuits continue to frustrate the process. Labor Negotiations Union workers were reportedly outraged by a mandate by Superior Court Justice Frank Newbould requiring parties involved in the collective agreement negotiations to keep a lid on […]
Steel service centers in the United States have seen inventories reach a bottom after years of decline and appear to be slowly bouncing back (see graphic below). This appears to be true for all steel products combined as well as flat rolled, plate, and pipe & tube segments. During the month of February 2017, U.S. […]
Total Canadian steel shipments for all products in February were 365,700 net tons, a decrease of 11.2 percent from the month before and a decrease of 7.8 percent from February 2017. Do keep in mind that total January shipments were at an 18 month high. Total steel inventories at the end of the month stood […]
Nucor Corporation increased its earnings guidance for first quarter 2017 to $1.10-$1.15 per diluted share, more than double its consolidated net earnings of $0.50 per diluted share in fourth quarter and well above analyst consensus of $0.69 EPS. Increased profitability is due to stronger performance of Nucor’s sheet and plate mills. Nucor said in its […]
Stelco, the former US Steel Canada, took another procedural step on March 10 to facilitate the sale of the company to Bedrock Industries. Stelco filed its final Plan of Compromise, Arrangement and Reorganization with the Ontario Superior Court that addresses restructuring Stelco’s liabilities and the transaction with Bedrock. The plan “would result in the Company […]
US Steel announced it will permanently close the No. 6 Quench and Temper Mill at Lorain Tubular Operations. The line has been idle since March 2015 and will be permanently shut down by June 8. “This proposed action is a strategic decision for the company after considering a number of factors, including challenging market conditions […]
Essar Steel Algoma’s oppression case against Essar Global received mixed results in a decision by Superior Court Judge Frank Newbould. In a decision on Monday, Newbould agreed that the lease agreement made by Essar Global with the Port of Algoma (Portco) in 2014, was “unfairly prejudicial to, and unfairly disregarded, the interests of Algoma’s trade […]
An antitrust lawsuit filed by indirect steel purchasers against ArcelorMittal USA, US Steel and other steel mills was dismissed in the US District Court of Northern Illinois last week. In 2008, Supreme Auto Transport LLC, based in Michigan, filed a complaint alleging that ArcelorMittal and others were among a group of steel producers who schemed […]
A US Steel worker was killed in an incident at Granite City Works on Sunday morning. The incident occurred in the rail yard around 10:00 am, said company spokesperson Erin DiPietro. No details were revealed concerning the nature of the incident and the name of the worker has not been released. Said DiPietro, “An investigation […]
Steel Market Update recently published a “letter to the editor” regarding the domestic mills need to compete in a world market. We received comments from a mill based source who asked they not be identified. The original letter is below with the response being the “bold” print below: I guess it’s fine for the US […]
An Ontario judge dismissed on Monday motions to reopen bidding for Essar Steel Algoma. Essar Capital Limited requested that SISP be reopened to allow Essar Global to submit a bid. Essar Global has the support of USW Locals 2251 and 2724 and Algoma retirees who asked the court for permission to continue discussions with Essar […]
Olympic Steel executives weighed in on steel demand, pricing, and government changes during the company’s earnings call last week. Olympic Steel CEO Michael Siegal attributes the rebound in steel pricing to “supply side dynamics combined with political optimism towards the business community after the very negative environment around the presidential campaign.” Said Siegal, “Entering 2017, […]
Steel Market Update received the following “Letter to the Editor” from a reader who in the past has been associated with companies supplying products to the domestic steel mills. With all of the articles being written about the industry from President Trump’s point of view we thought it a good idea to air a different […]
Big River Steel, the newest and most technologically advanced scrap recycling and steel production facility in the world, is officially open for business. According to David Stickler, Chief Executive Officer of Big River Steel, the first line went operational nineteen months after groundbreaking: “A world record time to start up a mill. We’ve invested […]
US Steel Corporation has promoted David B. Burritt to president and chief operating officer effective February 28, 2017. Mario Longhi, who served as president and chief executive officer, will continue as CEO and as a member of the board of directors. Longhi’s focus will be on the company’s strategic vision. Burritt will have executive responsibility […]
Workers at Essar Steel Algoma on Tuesday voted 98 percent in favor of striking if a satisfactory collective bargaining agreement cannot be reached. USW Local 2251, representing, 2100 workers in Sault Ste. Marie, has been working without a contract since July 2016. Essar Steel Algoma announced that Warren Winkler, the court appointed mediator, has scheduled […]
The US Steel will be in court on March 14 presenting oral arguments opposing the dismissal of antitrust claims in its Section 337 complaint against China. The US International Trade Commission initiated a Section 337 investigation on June 2, 2016 in response to a complaint by US Steel regarding the import of carbon and alloy […]
Union members from USW Local 2251 are meeting on Tuesday, Feb. 28 for a strike mandate vote against Essar Steel Algoma. Local 2251, representing hourly workers, and Local 2724, representing salaried workers, hoped to join forces in monetary negotiations with Algoma but the idea was rejected by the company. Local 2724 president Lisa Dale told […]
US Steel Corporation is suing the Minnesota Pollution Control Agency (MPCA) for failing to complete the pollution permitting process for the company’s Minntac mining facility in Mt. Iron, Minn. US Steel filed a Mandamus claim which asks a judge to require MPCA to take action on a specific request. US Steel said it has been […]
On Wednesday, February 22, 2017, California Steel Industries (CSI) sent a letter to their customers advising them of their intention to adjust their extras used when pricing galvanized steels in various thicknesses and coating weights. LME Zinc pricing has been on a tear over the past year as it has moved from $0.80 per pound […]
Ternium announced today the purchase of 100 percent of Thyssenkrupp AG’s Brazilian steel mill CSA, Cia Siderúrgica do Atlantico SA. The sale is based on a September 30, 2016 valuation of EUR 1.5 billion (US$1.86 billion) that is subject to agreed adjustments at closing. Ternium expects to disburse EUR 1.26 billion ($1.33 billion) for the […]
North Star Bluescope Steel reported underlying EBITDA in the first half of FY 2017 of $180.2 million, an increase of 178 percent from 1H FY 2016 . Sales revenue was US$ 598.7 million. The mill operated at 100 percent capacity in the first half and benefited from lower conversion costs, particularly in utilities. Shipments for […]
January service center shipments were exceptional. There are times when we wish we weren’t so hung up on three month moving averages and this is one of them. Daily shipments increased by 29.9 percent from December. Since 2009 on average, January has increased 8.1 percent hence our enthusiasm for the latest data. Carbon steel shipments […]
The Metals Service Center Institute (MSCI) called on the Trump administration to create a strategy that will evaluate trade violations impacting the entire industrial metals supply chain. MSCI president and CEO Robert Weidner said trade enforcement measures must protect not only the mills but also distributors, fabricators and processors in the supply chain. MSCI has […]
The Metal Service Center Institute (MSCI) released shipment and inventories data for the steel service centers located in the United States. They reported higher shipment rates coupled with lower flat rolled inventories (higher overall for all products) which is very supportive for prices to tighten over the next 30 days. U.S. steel service centers (all […]
US Steel announced today that it will withdraw “without prejudice” its trade secrets claim from the Section 337 complaint it filed with the U.S. International Trade Commission against China. US Steel will continue to pursue its claims of antitrust and false designation. The company released the following statement: “We remain committed in our efforts to […]
Essar Steel Algoma, under protection by the Companies’ Creditors Arrangement Act since November 2015, held its own in production and sales in January. January production surpassed 232,000 tons making it the highest single month production since September 2014. Improved selling prices and increased shipments brought in revenue of CAD $153 million in January for an […]
Total Canadian steel shipments for all products in January were 411,800 net tons, an increase of 42.0 percent from the month before and an increase of 5.7 percent from January 2016. Total steel inventories at the end of the month stood at 1,178,200 tons, up 0.6 percent from last month but down 5.8 percent from […]
Reliance Steel & Aluminum reported sales of $2.06 billion in fourth quarter, up 1.7 percent from fourth quarter 2015 and down 5.7 percent from Q3 2016. Tons sold at 1,365,000 were down 1.1 percent from Q4 2015 and down 5.6 percent from third quarter. Average selling price per ton sold was $1,500, essentially the same […]
SSAB Americas posted strong sales and shipments in fourth quarter 1016. The segment, which includes the mills located in Mobile, Alabama and Montpelier, Iowa, shipped 502,000 tonnes in Q4, up 19 percent from the previous quarter and 15 percent from Q4 2015. Sales totaled SEK 2,825 million ($318 million), an increase from third quarter and […]