The three T’s, taxes, trade and transportation, are top issues the American Iron and Steel Institute (AISI) hoped would be addressed by President Obama in the State of the Union address earlier this week. AISI president and CEO Thomas Gibson expressed disappointment in the President’s address which had some “positive elements for the manufacturing sector” […]
The Architecture Billings Index rebounded to 52.2 in December from 50.9 in November, according to the American Institute of Architects. Demand for design services increased in ten of the twelve months of 2014. The new projects inquiry index dropped slightly to 58.2 from 58.8 in the previous month while design contracts were at 49.9 after […]
US Steel told employees it will idle operations in Illinois and Indiana, laying off 545 workers. The newest cuts follow the layoff of 756 workers at its tubular plants in Ohio and Texas earlier this month due to decreased demand from oil prices and the surge in lower cost imports. Two coke ovens at Granite […]
“A perfect storm of congestion” is how one official referred to conditions at West Coast ports. Sitting offshore on Friday were 18 vessels waiting to dock—normally there are zero, said Philip Sanfield, Director of Media Relations, Port of Los Angeles. The congestion at the port is due to several causes, said Sanfield. Larger cargo vessels […]
Gulf ports are not experiencing the horrific congestion issues seen in the West. Fleetwood Port Logistics, out of Houston and Savannah, that deals primarily in break bulk steel products, has seen little to no congestion at the primary discharge terminal of North City Docks, Port of Houston. There has been some congestion at the smaller […]
The government of Canada has invoked a rarely used rule under the Foreign Extraterritorial Measures Act to bar companies from complying with the requirement that only U.S. steel be used in the rebuilding of the Prince Rupert ferry terminal in British Columbia. Funding for updating of the Prince Rupert Ferry Terminal is coming primarily from […]
US Steel Canada will return to court on Wednesday to seek an extension of its credit protection until May 20, 2015. USSC received bankruptcy protection last September under the Companies Credit Arrangement Act (CCAA), beginning a lengthy restructuring process which includes the sale of US Steel Lake Erie Works and Hamilton Works. Extensions are generally […]
EVRAZ North America produced 1.999 million tonnes (2.2 million net tons) of crude steel in 2014, down 8.8 percent from the total in 2013. Crude steel production increased by 5.7 percent to 528,000 tonnes (582,000 tons) in the final quarter of 2014 as compared to third quarter 2014. Finished steel products slipped 8 percent y/y […]
Nucor and Big River Steel met in federal court on Friday in a continuation of Nucor’s bid to stop construction of the rival steel mill. Nucor claims the air permit granted to Big River Steel was issued incorrectly and that emissions from the future plant will raise pollution levels in the county, violating the Clean […]
The Cass Freight Index report showed a 6.3 percent month-over-month drop in shipment volume in December, in line with seasonal expectations. The peak holiday shipping season is generally July to September, but Cass Information Systems says the peak in 2014 was earlier due to concerns related to the expiration of the ILWU labor contract at […]
Worthington Industries, Inc. announced Wednesday that it has signed an agreement to buy Rome Strip Steel Company, Inc. for an undisclosed amount. Rome Strip Steel is based in Rome, N.Y., and has a warehouse facility in Walhalla, S.C., Employing 130 people., Rome manufactures cold rolled strip steel primarily for the automotive industry. The companies capabilities […]
Each quarter ITR Economics and HARDI offer a forecast on the construction industry. Steel Market Update provides a summary of that forecast on a national and regional basis. This week we are going to change our format slightly and provide the national forecast summary based on ITR’s Interactive Regional Economic Forecast Webinar. We will provide […]
A fresh challenge to advanced high strength steel has emerged with a new product from Alcoa called Micromill. The new alloy is stronger, lighter and more formable than previous aluminum alloys. “We cracked the magic formula,” said Alcoa CEO Klaus Kleinfeld during the Q4 2014 earnings call. “In the past, if you wanted more formability, […]
The current activity index of the Philadelphia Manufacturing Business Outlook Survey dropped 18 points to register 6.3 in January, widely missing economic estimates of 18.7 for the month. The decrease indicates slower growth and was accompanied by a drop in new orders and shipments. The shipments index registered a negative reading, falling 22 points to […]
The Empire State Manufacturing Survey indicated expanding business activity in January. The headline general business conditions index climbed 11 points to 10.0 after falling below zero last month. New orders had a modest increase rising six points to 6.1, as did shipments with a seven point rise to 9.6. The unfilled orders index remained negative […]
The Dodge Momentum Index, a monthly measure of initial reports for nonresidential building projects in planning, rose 4.0 percent from a revised 123.8 in November to 128.7 in December. The reading is the highest since February 2009 and an increase of 17 percent year over year. “The increases seen in the Index in 2014 are […]
Esmark Inc. can finally celebrate the acquisition of Zelezara Smederevo Steel Works. Chairman and CEO James Bouchard announced Monday that Esmark Europe had been officially notified by the Republic of Serbia as the winning bidder for the steel works. The recently formed entity Esmark Europe BV will have a controlling 80.1 percent stake in the […]
Now that Essar Steel Algoma has its liquidity problems under control, the company is embarking on a CDN $350-$400 million investment plan in its steel mill located in Canada that will span the next 5 to 7 years. The plan includes optimizing operating capability, enhancing product quality, modernizing production lines and expanding the company’s product […]
Low oil prices and the proliferation of pipe and tube imports at below market prices are causing manufacturers to idle mills and lay off workers. The latest round of layoffs comes from Tenaris which announced it will lay off 500 employees in Conroe, Texas and in Blytheville, Arkansas. “The energy industry’s present circumstances have driven […]
US Steel Canada has until Tuesday to file the necessary papers to extend the creditor protection order that is set to expire on January 23. The extension is likely to be granted as long as USSC shows progress towards restructuring plans for Lake Erie Works and Hamilton Works—progress that USSC says is continuing. “The CCAA […]
A report by the German Federal Office for Information Security (BSI) reveals that in 2014 a German steel mill suffered serious physical damage from malicious hacking of its computer system. Unknown hackers broke into the mill’s office network with “sophisticated spear phishing” and worked their way through to the production network. The intrusion caused multiple […]
Low scrap prices and declining exports took a toll on earnings results for Schnitzer Steel Industries. Export selling prices for ferrous scrap declined by $80 per ton, or 20 percent, while domestic prices dropped $60 per ton, or 15 percent. The declines were the steepest seen by Schnitzer since 2012. The company reported a net […]
Sims Metal Management has announced the appointment of Tobin Popisil as President of the North America Metals-Central Region which includes the Midwest, South and Southwest regions of the U.S. Prior to joining the Sims, Pospisil served as President of the Gallatin Steel Company, a flat products mini-mill joint venture between ArcelorMittal and Gerdau. He joined […]
Commercial Metals Company (CMC) reported net sales of $1.7 billion for the first quarter of FY 2015, a four percent increase year-over-year. Earnings from continuing operations totaled $38.3 million. Americas Recycling recorded an adjusted operating loss of $1.1 million due to a decline in ferrous scrap shipments and margins. The America Mills segment recorded adjusted […]
US Steel announced Monday it will idle its US Steel Tubular Operations in Lorain, Ohio. In a letter to employees, US Steel said the layoffs are a “result of a decline in tubular market conditions, which is impacting demand for the plant’s products.” Layoffs affecting 614 employees will begin around March 8 and continue through […]
US automotive sales were positive across the board in December. Total sales for 2014 showed a vigorous auto industry aided by low gas prices, a recovering economy and higher employment. Total sales were reported to be 16,522,000 light vehicles. In the Big Three Detroit manufacturers, General Motors was up 19.3 percent in December and Fiat […]
Bidding has closed for Serbian steel mill Zelezara Smederevo with a decision due around February 1. Esmark Steel Group is considered the leading contender out of the 10 bids submitted to the Serbian government. The eventual buyer of the mill will be obligated to ramp up production of Zelezara’s second blast furnace to fifty percent capacity […]
Manufacturing growth across the globe slowed as 2014 drew to a conclusion. The December JP Morgan Global Manufacturing Purchasing Managers Index (PMI) registered 51.6 in December, down from 51.8 the previous month and its lowest level since August 2013. North America remained the primary driver of manufacturing growth for the world as the Eurozone and […]
Negotiations between the International Longshore and Warehouse Union and the Pacific Maritime Association are entering their eighth month. Rhetoric between the two parties has heated up in the past few weeks with the PMA blaming the ILWU for the slowdowns and congestion at the Western ports and the ILWU blaming the carriers and accusing PMA […]
Essar Steel Minnesota is asking the Minnesota legislature to extend the October 2014 repayment deadline for a $67 million state subsidy the company received in 2007, according to a report by the Duluth News Tribune. The extension would give Essar another seven years before repayment would be required. The funding was provided for building infrastructure […]