There have been a number of rumors flying about the marketplace since the announcement of the ThyssenKrupp Steel USA facility in Calvert, Alabama. We thought it prudent to address a couple of the issues where we have some insights. TK USA 2014 Contracts Steel Market Update has been advised by ThyssenKrupp Steel USA customers that […]
ThyssenKrupp AG exceeded its target of positive EBIT for the 2012-2013 fiscal year, ending September 30, by 100 million euros. EBIT for the fiscal year was 599 million euros ($815 million) said management at the annual press conference. Operating losses and impairment charges for Steel Americas (re-included in the fiscal year as a continuing operation), […]
ArcelorMittal conducted a conference call with steel analysts regarding the purchase of ThyssenKrupp Steel USA steel mill. The company outlined the reasons for the purchase and addressed a number of issues of importance to the steel community. In his opening remarks, ArcelorMittal CEO, Lakshmi Mittal spelled out their reasons for making the purchase: “So firstly, […]
Over the past few months we have seen constraints in the supply of flat rolled steel as one of the main drivers behind the higher price trend. Supply disruptions continued at a number of mills due to maintenance at Severstal, ArcelorMittal, USS and others as well as the restart associated with USS Lake Erie Works. […]
ArcelorMittal (AM) and their 50/50 joint venture partner Nippon Steel & Sumitomo Metal Corporation (NSSMC) reached an agreement with ThyssenKrupp AG to acquire the ThyssenKrupp Steel USA steel mill located in Calvert, Alabama. The purchase was valued at $1.55 billion for the 4.3 million tons of flat rolling capacity along with 1 million tons of […]
US Steel announced the election by the board of directors of David S. Sutherland to the position of independent, non-executive chairman effective Jan. 1, 2014. Sutherland will replace executive chairman John Surma who will retire on Dec. 31. US Steel split the roles of CEO and chairman when Mario Longhi succeeded Surma as CEO in […]
ArcelorMittal (AM) and their 50/50 joint venture partner Nippon Steel & Sumitomo Metal Corporation (NSSMC) reached an agreement with ThyssenKrupp AG to acquire the ThyssenKrupp Steel USA steel mill located in Calvert, Alabama. The purchase was valued at $1.55 billion for the 4.3 million tons of flat rolling capacity along with 1 million tons of […]
Steel Market Update spoke with steel analyst Charles Bradford of Bradford Research about the purchase of the ThyssenKrupp Steel USA assets by the ArcelorMittal/Nippon Steel & Sumitomo Metals Corporation joint venture. We wanted to understand the economics of the purchase as well as what will happen next prior to the closing of the deal. “ArcelorMittal […]
The anticipation over the fate of ThyssenKrupp Steel Americas is finally over with the sale of the Calvert, Alabama mill to joint venture partners ArcelorMittal and Nippon Steel and Sumitomo Metal Corporation. The $1.55 billion sale gives ArcelorMittal a firm foothold in the Southeast and in the NAFTA auto market. Nippon Steel & Sumitomo Metal […]
A fire at Republic Steel in Lorain, Ohio injured five people and destroyed three floors within the plant before being contained on Saturday. The victims suffered smoke inhalation, first degree burns and broken bones. The fire started just before 2:30 pm on Nov. 30 when a spark or heat ignited the oxygen supply of the […]
After compiling the results from our most recent Steel Market Update survey, we found service center inventories have risen to an average of 2.21 months for mid-November, the highest figure since mid-July of this year. This is an improvement compared to the early-November survey, when inventories were measured at 2.04 months, the lowest figure since […]
ThyssenKrupp AG put out a press release late this afternoon postponing their annual financial statements which were originally scheduled for this Thursday, November 21st. The reason being provided is the company is involved in “..exclusive negotiations on the potential sale of the US steel plant in Calvert/Alabama (ThyssenKrupp Steel USA). The talks also include a […]
The Metal Service Center Institute (MSCI) released their service center shipment and inventory data for the month of October 2013. Total steel shipments (all products) were reported to be 3,791,600 tons. October, which had 23 shipping days compared to September with 20 days, had a daily shipping rate of 164,900 tons down from September’s 169,000 […]
Canadian service centers saw their daily shipping rate (all products) fall from 23,800 tons per day in September to 22,100 tons per day in October. The distributors shipped a total of 486,800 tons of steel during October according to the MSCI. This represents a 1.2 percent improvement over October 2012. The number of shipping days […]
According to the World Steel Association, global steel production rose 1.4 percent in October to 134,262,000 tonnes compared to September and reached a capacity utilization rate of 78.0 percent. The annualized three month moving average production was 1.591 billion tonnes through October (Figure 1). Capacity is now 2.076 billion tonnes. Global production this year has deviated from the […]
Worthington Industries is poised to take advantage of the natural gas boom through production of pressure cylinders and gas processing units. About a third of Worthington’s profits are derived from their pressure cylinder segment. Worthington has five Ohio facilities and, with proximity to the Marcellus and Utica shale plays, has begun the manufacture of cryogenic […]
Last week Bhushan Steel, an Indian steel mill known for its exports of coated steel products to the United States, suffered a devastating explosion and fire which has killed at least one person and injured five others. The blast occurred when Bhushan was attempting to commission a blast furnace. Reports out of India suggest that […]
Cleveland, 14th November – The President of the United States today visited ArcelorMittal’s Cleveland facilities, where he met employees at the hot dip galvanising line and gave a speech on the economy. The President was welcomed to the plant by Lakshmi Mittal, Chairman and CEO. Speaking before the President, Mr Mittal said: “It’s a […]
Severstal NA reported sales volume increased 2.6 percent quarter-over-quarter to 1.2 million tonnes in the third quarter due to improved sales of CRC and galvanized products. Revenue was reported at $993 million, up 4.2 percent from $953 million in the second quarter. Higher sales volume and pricing along with lower costs at Severstal Columbus resulted […]
An industrial accident at ArcelorMittal Indiana Harbor West killed a contractor and injured two co-workers on Wednesday morning. The contractors were working in the No. 3 steel production facility, formerly the LTV steel mill, when they were hit by falling debris. “ArcelorMittal is extremely saddened to confirm a fatal incident involving a contractor at the […]
Cia Siderúrgica Nacional SA (CSN) reported a record third quarter with net revenue of $4.7 billion reais ($2.02 billion) , up 15 percent from the second quarter and 23 percent from third quarter 2012. EBITDA rose 51 percent from second quarter to $1.7 billion reais ($731 million) due to strong performance in its steel and […]
Steel Market Update (SMU) asked those distributors participating in our twice monthly steel market survey to advise us how many months of flat rolled steel they have on hand. We do not pretend to possess the data base of the MSCI and we defer to their data base – especially in the case of the […]
Kloeckner Americas reported sales of €594 million ($793 million) during the third quarter, down 14.9 percent from a year ago. Third quarter EBITDA of €20 million ($26.7 million) was up 67 percent from €12 million in 2012 and was unchanged from second quarter 2013. The US segment accounted for 38 percent of Kloeckner & Co. […]
AK Steel announced a $30 per ton price increase on spot flat rolled steel products earlier today. The full announcement published on the company website is as follows: West Chester, OH, November 07, 2013—AK Steel (NYSE: AKS) said today that it will increase current spot market base prices for all carbon flat-rolled steel products by […]
Released short after the AK Steel announcement, in a letter to their customers Severstal North America (SNA) increase minimum spot flat rolled steel base prices by $20 per ton. The $20 per ton assessment is based on the difference between the company’s October 1, 2013 announcement and what was announced today. The letter begins as […]
ArcelorMittal reported a net loss of $193 million in the third quarter. Sales of $19.6 billion were down from $19.7 in the second quarter and $20.2 billion in the third quarter of 2012. EBITDA of $1.7 billion was reported for the quarter, 24 percent higher than the same quarter in 2012 and well above analyst […]
CHICAGO, IL – November 6, 2013 SMS Mill Services Michigan, LLC (SMS) is pleased to announce that it has been awarded a steel slab conditioning services agreement with Severstal North America (SNA) at its Dearborn, Michigan operation. With engineering already in process, SMS will provide infrastructure, equipment and personnel to fully scarf (skin), cut to […]
Latin American steel mill Ternium reported net sales of 2.14 billion on shipments of 2.3 million tons of steel and 930 thousand tons of iron ore. Steel shipments were up 4 percent from second quarter and 2 percent from third quarter 2012. Iron ore shipments were down 24 percent from second quarter but up 106 […]
Goldman Sachs steel analysts, in a letter to their clients seen by Steel Market Update, upgraded the steel sector as they feel, “…we see the sector heading to a sustainable recovery over the coming years…” They went on to tell their clients, “The supply-demand fundamentals for steel are starting to look more appealing, particularly for […]
Nucor Steel has filed an objection to the air quality permit issued to Big River Steel in an effort to block construction of the $1.1 billion mill. The challenge to the Arkansas Department of Environmental Quality decision will push back the ground breaking for the new steel mill to the first quarter of 2014. Big […]