SSAB, following its successful merger with Finnish steelmaker Rautaruukki, expects to reduce its annual cost base by SEK 1.4 billion ($194.7 million) over a three year period. In addition to cost synergies, SSAB expects to free up cash flow in the amount of SEK 500 million ($69.5 million)—half of it during 2015. The savings may […]
Essar Steel Minnesota announced Wednesday that it has secured funding to move ahead with completion of its $1.8 million taconite plant. Last month a bond deal was called off after the company failed to raise the required equity by the bond deadline. The amount of the funding was not disclosed but Essar Assistant General Counsel […]
To cap off its 30th anniversary, California Steel Industries, Inc. (CSI) announced production of the first pipe from the new electrical resistance welded (ERW) pipe mill at CSI Tubular Products (CSITP). The announcement coincided with celebration, invitation-only tour of the $100 million pipe mill at CSITP. The new mill will feature API (American Petroleum Institute, […]
All of SSAB’s U.S. facilities are running at full capacity according to SSAB CEO Martin Lindqvist. In an interview with Bloomberg, the head of the Swedish steel company said the “re-industrialization” of the U.S. and improved demand from the energy, automotive and heavy transport sectors is boosting profitability for SSAB’s US operations. North American orders […]
Evraz North America LLC has filed for an initial public offering (IPO) with the US Securities Exchange Commission. Evraz North America said it intends to use the proceeds from the share offering to complete acquisition of North American assets and repay debt to its Russian parent company Evraz. The number and price of shares to […]
Essar Steel Algoma announced a “turnaround performance” in their second quarter FY 2015 guidance for the period ending September 30, 2014. The company expects second quarter steel shipments to equal 680,000-690,000 tons with EBITDA of CDN $75-85 million, compared to 530,000 tons and CDN $12.4 million EBITDA in Q1. Second quarter EBITDA projections far exceed […]
On Wednesday, Steel Market Update (SMU) participated in a monthly steel conference call hosted by the Heating, Air-conditioning , Refrigeration Distributors International (HARDI). HARDI wholesalers supply galvanized sheet and coils to the mechanical contractors involved in residential, multi-family and commercial construction segments of the construction industry. Consolidation was the first topic of discussion with AK Steel […]
US Steel Hamilton Works will be put up for sale within two months according to court filings by US Steel Canada’s President and General Manager Michael McQuade. Lake Erie Works is expected to be placed for sale by March 15, 2015. A statement by US Steel Canada Director, Government and Public affairs follows: “From the […]
Essar Steel’s Canadian entities have been struggling with financing this year and now that Essar Steel Algoma problems appear resolved, Essar Steel Minnesota LLC (ESML) finds itself in dire need of capital. The $1.8 billion taconite plant under construction in Nashwauk, Minn., failed to raise the $361 million in equity needed in time to secure […]
Worthington Industries began its fiscal year 2015 with higher sales and solid net earnings. The company, located in Columbus, Ohio, reports net earnings of $44.2 million for FY 2015 first quarter, ending on August 31, 2014. Net sales totaled $862.4 million, up 25 percent compared to the first quarter of 2013. The consolidation of TWB […]
An explosion at US Steel Fairfield on Sunday evening resulted in the death of two worker and the severe injury of another. US Steel security and paramedics responded to the incident. Edward Lamar Bryant, 53, was pronounced dead on Sunday at UAB Hospital emergency room in Birmingham, Al. Leo Bridges and Mac Bedwell were transported to the […]
Steel Market Update attended the groundbreaking ceremony for Big River Steel in Osceola, Arkansas which was held on Monday, September 22nd. According to Big River Steel Chairman and CEO John Correnti (and the sign at the entrance to the work site), the mill will be making steel in 550 days. A groundbreaking ceremony is much […]
Creditors of US Steel Canada are wondering how they are going to recover the money owed to them by the steel company. The Hamilton Spectator reports that US Steel Canada owes more than $94 million to contractors and suppliers, 190 of which are in the Hamilton area. The CCAA process prevents creditors from suing USS […]
Total service center carbon steel shipments in August decreased by 61,400 tons to 3.477 million tons. Shipping days also decreased from 22 to 21. On a tons per day basis (t/d) shipments increased from 160,900 tons in July to 165,600 in August. All three months June, July and August had the best t/d shipments of […]
The Metals Service Center Institute (MSCI) released shipment and inventory data on the U.S. service centers this week. Total steel shipments of all steel products rose on a daily basis in August compared to July. The daily shipment rate was 173,000 net tons and shipments totaled 3,634,000 tons. The number of tons shipped was essentially […]
Canadian shipments for all steel products in the month of August were 456,600 net tons, a decrease of 5.3 percent from the month before and a decrease of 4.6 percent from August 2013. Inventories at the end of the month stood at 1,499,500 tons, up 2.2 percent from last month and up 8.0 percent from […]
US Steel announced they will seek court protection from creditor claims against US Steel Canada under the Companies’ Creditors Arrangements Act (CCAA). In the meantime US Steel will provide CA $185 million (US$165 million) to secured debtor-in-possession financing to support the Canadian mills through the end of 2015. For now, US Steel Canada will carry […]
Steel Market Update (SMU) conducted our mid-September flat rolled steel market analysis this week. We invited slightly more than 600 companies to participate in the latest survey which analyzes various trends which affect the flat rolled steel market. One set of questions had to do with the consolidation of the steel mills as SDI and […]
Steel Dynamics Inc. expects profits from third quarter steel operations to surpass second quarter and year over year results. In their third quarter guidance, SDI indicated earnings of $0.34 to $0.38 per diluted share that will include before tax charges of $34 million related to the acquisition and financing of Severstal Columbus. Shipments and metal […]
Nucor is expecting higher profitability for its sheet steel, structural, bar and plate operations for third quarter. In their quarterly guidance, Nucor noted that manufactured goods, including energy and automotive, are their strongest markets. The high level of imports continues to pressure prices downward. Growth in the residential market has benefited the fabricated construction products […]
Esmark Inc. has appointed steel industry veteran Michael P. DiClemente Executive Vice President of Finance and Treasurer for Esmark, Inc., and its new formed company, Esmark Europe. DiClemente will direct all financing and treasury management functions for both parent company Esmark, Inc. and its newly formed company, Esmark Europe. “Mike’s significant experience in the public […]
US Steel announced today that as part of its strategic transformation effort it will no longer pursue the expansion of its Keetac iron ore pellet operations at Keewatin, Minn., or continue additional investments into the carbon alloy facility at Gary Works. The expansion at Keetac was intended to upgrade and restart the idled pelletizing line […]
The steel market is scrambling to gather information as U.S. Steel Canada today announced they are initiating a court supervised restructuring of the Hamilton and Lake Erie steel mills (USS Canada) so that they can “compete in the North American steel market for the long term.” Metals and mining analysts told SMU this evening that […]
The following press release was made earlier today regarding two investments which are being made in the AM/NS Calvert steel mill (former ThyssenKrupp Steel USA Calvert mill). The two investments will assist in bringing the mill up to its 5.3 million metric ton (5.8 million net tons) target for production. The release (below) came from […]
AK Steel announced today the completion of the $707 million purchase of Severstal Dearborn, which includes a cokemaking facility and interest in three joint venture steel processing facilities. The mill will be renamed “Dearborn Works.” “At AK Steel, the future is now, and the future is bright, as our acquisition of Dearborn Works makes us […]
Steel Dynamics Inc. announced today the completion of the acquisition of Severstal Columbus for a purchase price of $1.625 billion. “I would like to enthusiastically welcome the Columbus employees, community, and customers into the Steel Dynamics family,” stated Mark D. Millett, Chief Executive Officer. “The successful completion of the Columbus acquisition is an important milestone […]
Essar Steel Algoma has received permission from the Ontario Superior Court of Justice for a recapitalization and refinancing plan that was approved by shareholders in a September 10, 2014 meeting. The Plan of Arrangement allows for a capital infusion of up to $100 million from the Essar Global Fund Ltd to complete scheduled capital improvements […]
On Monday, Nucor announced their intention to acquire Gallatin Steel and its approximately 1.8 million tons of hot rolling capacity. Today, AK Steel and Steel Dynamics (SDI) completed the purchase of the Severstal North America assets. The biggest pieces of the Severstal deal are the Dearborn steel mill, which went to AK Steel, and the Columbus […]
On Monday, Nucor announced their intention to acquire Gallatin Steel and its approximately 1.8 million tons of hot rolling capacity. On Tuesday, AK Steel and Steel Dynamics (SDI) completed the purchase of the Severstal North America assets. The biggest pieces of the Severstal deal are the Dearborn steel mill, which went to AK Steel, and the […]
Nucor announced this morning that they have reached an agreement to purchase all of the equity in Gallatin Steel for $770 million. Gallatin Steel is located in Ghent, Kentucky and has the capacity to produce approximately 1.8 million tons of hot rolled steel. Gallatin is an electric arc furnace (EAF) mini mill and complements Nucor’s […]