Written by: Sandy Williams World Steel Association figures showed an increase of 1.2 percent in world crude steel output for 2012 at 1.5 billion tonnes (metric tons). Most of that increase came from China which accounted for 46.3 percent of total world output leaving production by the rest of the world relatively flat. Steel output […]
Esmark Inc., Stahlschmidt Inc. and Bouchard Group LLC have announced the joint acquisition of Esmark Technologies. Esmark Technologies will provide technical management services across the steel, manufacturing and industrial sectors and will be based in Cleveland Ohio. Esmark Inc., founded by Chairman and CEO James Bouchard, has strong roots in the steel industry. Current interests […]
Existing home sales slowed slightly in December but limited inventory is fueling price increases, according to the National Association of Realtors. December sales declined 1.0 percent to a seasonally adjusted annual rate of 4.94 million in December from a downwardly revised 4.99 million in November, but are 12.8 percent above the 4.38 million-unit level in […]
A tropical storm shut down ports in Australia on Tuesday stopping shipment of nearly half of the world’s iron ore trade. Port Hedland, Dampier and Cape Lambert shut down operations as vessels moved out to sea and away from the area. The ports service the mines Rio Tinto, BHP Billiton, Fortescue Metals Group and Atlas […]
ThyssenKrupp AG held its annual meeting Friday and was attended by thousands of shareholders who were angry at the past year’s failures and anxious to hear what solutions management could offer. Supervisory Board Chairman Gerhard Cromme faced intense pressure from some shareholders to resign over the Steel Americas debacle but held his ground. “If you […]
Steel Market Update is a member of an association connected to the construction industry called HARDI. HARDI stands for Heating, Air-conditioning & Refrigeration Distributors International. HARDI and The Institute for Trend Research (ITR), an economic forecasting company, work together to gather economic data to provide a forecast to the HARDI members located in the United […]
Written by: Sandy Williams ArcelorMittal Lázaro Cárdenas, Mexico recently launched production of specialized slabs for use in pipelines that transport sour gas. Lázaro Cárdenas is known as a leading producer of high quality, value added steel. In order to increase its share of the growing market for API (American Petroleum Institute) pipes, best technological practices […]
Written by: Sandy Williams Creditors of bankrupt RG Steel are seeking court permission to sue Renco Group founder and billionaire Ira Rennert for deliberately delaying the bankruptcy filing of RG Steel in order to protect his own financial interests. RG Steel and its affiliates are 75 percent-owned by Renco, with the remaining equity owned by […]
Written by: Sandy Williams Steel Market Update is a member of an association connected to the construction industry called HARDI. HARDI stands for Heating, Air-conditioning & Refrigeration Distributors International. HARDI and The Institute for Trend Research (ITR), an economic forecasting company, work together to gather economic data to provide a forecast to the HARDI members […]
Written by: Sandy Williams Housing starts rose at the fastest pace since 2008, showing continued recovery in the housing market. The Commerce Department said housing starts were at a seasonally adjusted annual rate of 954,000, up 12.1 percent from the revised November estimate and up 36.9 percent from the December rate in 2011. Starts of […]
Written by: Sandy Williams At least eight new steel plants are under construction in Asia (not including India) that will increase the annual output capacity of steel in Asia by 100 million tonnes within the next few years. Currently China accounts for nearly 50 percent of global steel demand with its own annual output capacity […]
Written by: Sandy Williams Metal forming companies are expecting a spike in business conditions in the next three months according to survey data released Wednesday by the Precision Metalforming Association (PMA). Survey data shows 32 percent of participants are expecting conditions to get better in the next three months (up from 22 percent in December) […]
Written by: Sandy Williams Former RG Steel assets from both Sparrow Point and Warren are headed for the auction block. Sparrow Point assets are being offered by Hilco Industrial at an onsite auction January 23-24 and will include mobile, construction, material handling and support equipment along with spare parts and production lots. An online auction […]
Written by: Sandy Williams Construction employment is expected to rise in 2013 according to survey data presented by the Associated General Contractors of America in their construction industry outlook report for 2013. Of those firms surveyed in 30 states, 31 percent expect to add new staff this year while only 9 percent plan to make […]
Written by: Sandy Williams Conditions for New York manufacturers continue to decline at a modest pace according to the Empire State Manufacturing Survey for January 2013. The general business conditions index declined for the sixth consecutive month to -7.8 in January. New orders fell four points to -7.2 and the shipments index declined 15 points […]
Written by: Sandy Williams Iron ore prices are at a 15 month high but are unlikely to stay that way say analysts. Currently, 62% Fe ore is at $158 per tonne, soaring from November’s price of $116 and almost doubling from the low of $87 per tonne in September. Analysts say the increase is a […]
Written by: Sandy Williams Natural gas is providing cost savings for steel plants while at the same time creating more demand for steel products used in pipelines, drilling equipment and rigs. It is a win-win situation for the steel and the natural gas industries One of the ways natural gas is utilized by the steel […]
Written by: Sandy Williams Essar Steel Algoma was granted temporary pension relief on Friday by the Ontario government. The company will defer special pension payments for the 12 months beginning December 2012 and ending November 2013. Low interest rates have caused Essar Steel Algoma’s pension contribution requirement to more than double from those made […]
Written by: Sandy Williams ThyssenKrupp continues to cull members of its boards for roles in the failed ThyssenKrupp AG venture and for allegations of corruption. The latest member of a board to leave is Bertin Eichler, vice chairman of the ThyssenKrupp AG supervisory board. Eichler has been under investigation for misuse of company funds for […]
Written by: Sandy Williams Iron ore buyers have been watching with concern the path of Cyclone Narelle as it approaches the western shore of Australia. The west and northwest region contains 93 percent of Australia’s iron ore mines. In past years cyclones and flooding have disrupted mine operations for coal and iron ore sending steel […]
Written by: Sandy Williams ArcelorMittal announced Wednesday that it will offer common stock and mandatorily convertible subordinated notes (MCNs) for an expected amount of $3.5 billion in an effort to reduce indebtedness. The company expects the sale of stock and notes, along with other initiatives, to enable ArcelorMittal to reduce its current debt to $17 […]
Written by: Sandy Williams Steel prices and buyers risks were discussed by John Anton, Director of IHS Steel Service, on Wednesday in the 2013 Steel Buyers Guide a webinar presentation by IHS Global Insight. Anton says right now it is a buyer’s market and there are significant savings to be had for those willing to […]
Written by: Sandy Williams Schnitzer Steel, one of the largest U.S. manufacturer and exporter of recycled ferrous materials, reported adjusted operating income of $3 million for the first quarter of 2013, a drop of 81 percent from $15 million reported in first quarter 2011. The adjustment reflected a $2 million pre-tax restructuring charge associated with […]
Written by: Sandy Williams In the December ISM Steel Buyers Survey, 54.5 percent of respondents reported having inventory on hand to cover shipping levels for 1-2 month, 18.2 percent said 0-1 months and 27.3 percent for 2-3 months. Compared to levels 12 months ago, 36.4 percent said tons on hand were about the same as […]
Written by: Sandy Williams Commercial Metals Company announced first quarter net earnings ending November 30, 2012, of $49.7 million, down from $107.7 million at the end of November 2011. Results were partially attributed to a drop in profit from CMC’s Americas Recycling segment which saw lower demand that affected ferrous and nonferrous pricing and volumes. […]
Written by: Sandy Williams As you all know, Congress approved legislation on Tuesday to avert the fiscal cliff crisis. Here is a summary of that legislation as published in the Chicago Tribune. Reuters, January 2, 2013—The U.S. House of Representatives approved a Senate bill on Tuesday night to avert $600 billion in automatic tax increases […]
Written by: Sandy Williams The JP Morgan Global Manufacturing PMI rating increased to 50.2 in December from 49.6 last month according to data released in a composite index produced by JPMorgan and Markit in association with ISM and IFPSM. It is the first time the index has been above the neutral mark of 50.0 since […]
Written by: Sandy Williams Construction spending in November decreased to a seasonally adjusted annual rate of $866.0 billion, down 0.3 percent from the revised October estimate of $868.2 billion according to data released by the Department of Commerce on Wednesday. “Preliminary data from the Census Bureau for November shows overall construction spending slipped 0.3 percent […]
Written by: Sandy Williams ArcelorMittal will sell a 15 percent interest in ArcelorMittal Mines Canada to a consortium led by POSCO and China Steel Corporation for $1.1 billion. The deal will be completed over the first and second quarters of 2013. “We are committed to growing ArcelorMittal’s mining business,” said Peter Kukielski, Chief Executive of […]
Written by: Sandy Williams U.S. automakers had a banner year in 2012. When all the totals are in, analysts expect annual sales to top 14.5 million, the best performance in five years. A variety of factors contribute to the boom in car sales including lower interest rates, less unemployment, and an average car age of […]