Steel Dynamics Inc. anticipates improved profitability in third quarter from modestly increased margins that were offset by slightly lower shipments. Earnings will be higher than second quarter which was impacted by the closing of the Minnesota Iron operations and a planned maintenance outage at Iron Dynamics. SDI expects overall average product pricing to be flat […]
Based on Steel Market Update (SMU) analysis of the recently released MSCI service center inventory and shipment data, total service center carbon steel shipments decreased by 126,600 tons in August to 3.160 million tons. Shipping days at 21, were down one from July. On a tons per day basis (t/d) shipments increased from 149,400 tons […]
Labor negotiations continue to pause at US Steel, ArcelorMittal and ATI. The USW bargaining committee has been holding meetings at US steel locations to review the union’s most recent proposal and the status of negotiations. “Though there has been no significant progress to report on bargaining [with US Steel] in recent days, talks will continue, […]
The Association of Steel Distributor held their regional meeting in Cleveland last Thursday at the Metropolitan on the 9. If you ever have a chance to be in Cleveland check out this hotel that is designed around the existing bank vaults built by the Carnegie Steel company. The meeting was held jointly with the Association […]
U.S. Steel Canada is seeking a court order that will allow it to continue the restructuring process beyond this year. Without the order, the company says it would have to cease operations at the end of 2015. “With a Court Order we can preserve work and meet obligations to approximately 2,200 employees and continue to […]
AK Steel expects shipments to increase by 3 percent in third quarter to approximately 1.86 million tons primarily on the strength of auto market shipments. In its third quarter guidance, the company said it anticipates an average selling price of $910 per ton, down 2 percent from Q2 due to lower carbon steel spot pricing […]
The Metal Service Center Institute (MSCI) released August distributor shipment and inventory data on Wednesday of this week. Total steel inventories remained essentially unchanged in August compared to July as the daily shipping rate declined by 3.8 percent. The biggest declines in shipments were attributed to carbon plate (-14.8 percent), structurals (-3.9 percent) and carbon […]
Once one of the largest corporate giants in the United States (if not the world), United States Steel (USS) continues to shrink its workforce as demand for its products shrink. SMU has learned that an unknown number of white collar workers have been advised that they will be losing their jobs. USS Spokesperson Courtney Boone […]
Mediation may be the solution to the controversial issues between US Steel and stakeholders at US Steel Canada. Former Ontario Superior Court associate chief justice Douglas Cunningham will preside over a three-day session scheduled to begin next week. “The mediation shall address the feasibility of a comprehensive agreement among the parties,” wrote Superior Court Justice […]
Nucor guidance for third quarter 2015 beat analyst estimates. Results are expected to be in the range of $0.45 to $0.50 per diluted share, up from $0.39 in second quarter but a decrease from 2014 Q3 earnings of $0.76 per diluted share. Nucor said margins have benefited from lower inventory costs in third quarter. The […]
The USW bargaining committee for US Steel is heading home according to a Sept. 14 update by the USW. Committee members will meet with local membership to discuss the status of ongoing negotiations with the US Steel. “While we have made some significant progress this summer on some important issues, we remain far apart on […]
Steel Dynamics announced expansion of its product offerings through the purchase of steel decking facilities from Consolidated Systems, Inc. The facilities and net working capital of approximately $30 million was purchased by SDI for $45 million and will become part of New Millennium Building Systems, LLC, a wholly owned fabrications operations subsidiary. Mark Millett, President […]
Over the weekend ArcelorMittal walked away from the negotiating table with the United Steelworkers. The question now becomes, if the two sides are committed to their positions – especially on health care coverage and worker contributions (there are currently none)—will there be a lockout? The union will not strike because they are being asked to […]
ArcelorMittal USA has walked away from the bargaining table following submission of a proposal by the USW that “meets our members’ needs and protects benefits.” The union called the move by management “disappointing but not surprising.” The negotiating committee is returning to the plants and has scheduled informational meetings Tuesday in Weirton at 3 p.m. […]
SMU has been canvassing secondary flat rolled steel service centers and brokers around the United States to see how the secondary markets are faring in the current market conditions. We had an extended conversation with a Chicago based distributor who told us that the current market is all about “staying power.” What this executive meant […]
US Steel and the USW are continuing efforts to hammer out a deal at the bargaining table. In a Sept 10 update the USW said negotiations were progressing slowing with progress on some significant issues but with “unrealistic and unacceptable demands for concessions” on others. Unacceptable to the union is a two tier plan that […]
Concern is mounting regarding US Steel’s announcement that it will move production from US Steel Canada to the United States. “When is the federal government going to stand up to U.S. Steel and defend Canadian workers and pensioners?” asked Gary Howe, President of USW Local 1005 in Hamilton in a recent USW posting. “From Day […]
Progress appears stalled at the bargaining table with neither ArcelorMittal nor the USW willing to make concessions. In Update 12 on Friday, the USW reported progress in the labor negotiations has been “slow.” “Although the company says that it wants a new contract with our union, that desire has not been reflected in its proposals […]
The union, which in its fourth week of lockout at ATI, filed an affidavit with the National Labor Relations Board on Wednesday claiming the lockout is illegal. Tom Conway, USW vice president and chief negotiator for the union, filed the affidavit but would not detail reasons why the lockout is illegal. The charges are currently […]
US Steel plans to relocate 15,000 tons of monthly automotive steel production from Hamilton Works and Lake Erie Works to its US facilities. Court monitor Alex Morrison was informed that the reallocation will take effect for customer shipments in Oct. 2015. Seventeen employees at Hamilton will be laid off and 10 others redeployed. The production […]
The United Steel Workers said it would prefer to continue contract negotiations rather than seek a strike authorization from the membership. On Monday, June 1, the day before contract expiration, the USW offered to continue working under the previous contract while continuing negotiations with US Steel. US Steel responded that it remained committed to operating […]
On Monday, Aug. 1, ArcelorMittal accepted the USW offer to continue to remain at the negotiation table under a “continue to work agreement.” “We believe this “continue to work agreement” provides the fullest opportunity to resolve our differences and demonstrates both parties commitment to negotiating in good faith to achieve a mutually beneficial agreement and […]
The USW issued an update Friday regarding ArcelorMittal/USW negotiations. At this time the USW negotiating committee intends to remain at the bargaining table rather than seeking strike authorization from the membership. The update reads as follows: Our committee continued to meet both internally and with ArcelorMittal management this week in Pittsburgh. Although we are far […]
Essar Steel Algoma announced that first quarter FY 2016, ending June 30, 2015, closed with a positive EBITDA of CDN $12.4 million. Capacity utilization was at 90 percent and steel shipments of 632,000 tons were 19 percent higher year over year. Higher production and shipments, however, were unable to counter low pricing caused by dumped […]
As the deadline for contract expiration draws near (Sept 1), SMU thought a historical perspective on US Steel and USW negotiations might be in order. In the history of US Steel there have been only two labor work stoppages. The first was a historic 116 day strike by 500,000 steelworkers in 1959. The second occurred […]
Bluescope Steel, which owns a 50 percent share of joint venture North Star Bluescope Steel, reported strong results for North Star in FY 2015. Hot rolled product sales were AUD $762.6 million on higher volumes and favorable AUD:USD exchange rate for fiscal year 2015 (based on 50 percent share). The company kept a consistent 100 […]
Throughout the first four months 2015, service centers were dumping steel into their manufacturing customers (and each other) as mill and international prices fell. Domestic mill spot prices bottomed at the end of April as the domestic mills announced their first of two $20 per ton price increases. Service centers responded to those price announcements […]
USW workers came out in force in rallies at ArcelorMittal and US Steel locations across the country last week. About 3,000 steelworkers marched to the gates of US Steel’s Gary Works in Indiana carrying signs saying “Fair Contract now” and “Mario Got his $15,000,000. Where’s Ours?” Hobart Mayor Brian Snedecor joined other mayors in the […]
Big River Steel announced a series of leadership appointments today following the unexpected death earlier this week of CEO John Correnti. Dan Murray, a member of the board, was appointed as chairman of the board of directors. Jim Bell, construction manager at Big River Steel, was elected to the board of directors. Dave Stickler, […]
Union workers from US Steel and ArcelorMittal staged rallies and marches at locations across the country this week. Contract negotiations are stalled over concessions the companies want on health and retirement benefits. Carrying signs and rallying to slogans like “United we bargain, divided we beg” and “No contract no peace,” thousands of USW members took […]