A surprise court decision on May 30, denied a request by Canadian steel mill Algoma for approval of a DIP extension agreement and the appointment of a restructuring committee. The current DIP loan expired on April 30, 2017. The agreement would have extended the maturity of the $164 million loan to August 31 with an […]
Steel Market Update (SMU) spend the majority of today discussing the flat rolled steel markets with steel buyers from around the country. The main topic of conversation was pricing, which is anticipated will drop over the next 30 days and Section 232 which is expected to end that drop… Flat rolled steel buyers reported most […]
Essar Steel Algoma announced on Friday, May 26 that the company will now be known as Algoma. The rebranding was revealed during a ceremony at the St. Mary’s River facility to mark a new chapter in Algoma’s history. “Effective immediately, we will have a new name, a new brand, a new path and a renewed […]
AISI, WASHINGTON, D.C. – The American Iron and Steel Institute’s (AISI) Board of Directors today elected John Ferriola, Chairman, President and CEO, Nucor Corporation, to serve another year as chairman of the Institute, through May 2018. “John is a recognized leader in the global and domestic steel industry. He is an outspoken advocate for the […]
Essar Steel Algoma is asking for debtor-in-possession financing to be extended a fourth time until Aug. 30, 2017. In the 31st report of the Monitor, Brian Denega asked that the extension be approved and that a Restructuring Committee be established to take some of the burden of negotiations and restructuring off key executives who can […]
USW Local 2251 voted 98.6 percent in favor of ratification of a Support Agreement for an undisclosed party interested in acquiring the assets of Essar Steel Algoma Inc. The announcement was made April 10 in a press release signed by Local 2251 president Mike Da Prat. Da Prat told the Sault Star that he could […]
Essar Steel Algoma is making progress on paying its debts. According to the latest (27th) Monitors report, Algoma has repaid $42.7 million as of March 25, 2017 through weekly “cash sweeps” to its Debtor in Possession lenders. Another $2.5 million will be paid on April 3 which will result in reducing the outstanding balance under […]
Essar Steel Algoma will get a third loan extension while it continues to hash out an agreement to emerge from CCAA protection. The company has another thirty day extension before its debtor-in-possession financing expires on April 30. According to the Twenty-sixth Report of the Monitor filed on March 21, the extension comes at “a critical […]
Three Canadian Chambers of Commerce presented their concerns about unfairly traded steel to the Federal Government’s Standing Committee on International Trade on March 21. The Sault Ste. Marie Chamber of Commerce and its counterparts from Windsor-Essex and Hamilton were joined by key Canadian steel producers including Essar Steel Algoma, Stelco Inc., Gerdau Long Steel North […]
More complications for Essar Steel Algoma as it nears a deadline to emerge from the CCAA protection. Union disputes and lawsuits continue to frustrate the process. Labor Negotiations Union workers were reportedly outraged by a mandate by Superior Court Justice Frank Newbould requiring parties involved in the collective agreement negotiations to keep a lid on […]
Essar Steel Algoma’s oppression case against Essar Global received mixed results in a decision by Superior Court Judge Frank Newbould. In a decision on Monday, Newbould agreed that the lease agreement made by Essar Global with the Port of Algoma (Portco) in 2014, was “unfairly prejudicial to, and unfairly disregarded, the interests of Algoma’s trade […]
An Ontario judge dismissed on Monday motions to reopen bidding for Essar Steel Algoma. Essar Capital Limited requested that SISP be reopened to allow Essar Global to submit a bid. Essar Global has the support of USW Locals 2251 and 2724 and Algoma retirees who asked the court for permission to continue discussions with Essar […]
Workers at Essar Steel Algoma on Tuesday voted 98 percent in favor of striking if a satisfactory collective bargaining agreement cannot be reached. USW Local 2251, representing, 2100 workers in Sault Ste. Marie, has been working without a contract since July 2016. Essar Steel Algoma announced that Warren Winkler, the court appointed mediator, has scheduled […]
Union members from USW Local 2251 are meeting on Tuesday, Feb. 28 for a strike mandate vote against Essar Steel Algoma. Local 2251, representing hourly workers, and Local 2724, representing salaried workers, hoped to join forces in monetary negotiations with Algoma but the idea was rejected by the company. Local 2724 president Lisa Dale told […]
Essar Steel Algoma, under protection by the Companies’ Creditors Arrangement Act since November 2015, held its own in production and sales in January. January production surpassed 232,000 tons making it the highest single month production since September 2014. Improved selling prices and increased shipments brought in revenue of CAD $153 million in January for an […]
“Sanity is back in the seabourne iron ore market,” said Cliffs Natural Resources CEO Lourenco Goncalves in comments during the Cliffs earnings call on Thursday. After the departure of three key executives in the Australian ore market, iron ore prices doubled and Rio Tinto, Vale and BHP are exhibiting disciplined behavior which will support strong […]
USW Local 2251 at Essar Steel Algoma has called a strike vote for Tuesday, February 28. The union says it has no choice after withdrawing a complaint with the Ontario Labour Relations Board and accepting that the collective agreement contract expired on July 31, 2016. The union is now subject to the provisions of Local […]
Essar Steel Algoma announced on Tuesday that it has received an extension to its Debtor-in-Possession financing facility (DIP). The Ontario Superior Court of Justice approve the amendment and extension on January 31, extending the DIP to March 31 with the option of a further thirty day extension. Stay of proceedings has also been extended to […]
In the last week there have been four statements released regarding the restructuring of Essar Steel Algoma. The first began last weekend with an appeal by former parent company Essar Global to be readmitted to the bidding process for Algoma. Essar Global criticized the Sales and Investment Solicitation Process (SISP) noting that KPS Capital dropped […]
A war of words is underway between Essar Steel Algoma secured creditors and former parent company Essar Global Fund. In a letter to the CCAA monitor Essar Global asserted that with the restructuring efforts still not resolved, the Sale and Investment Solicatation Process should be reopened to allow Essar to present its interest in acquiring […]
Are steel prices poised to give back some of the gains collected over the past few months? Steel Market Update and our readers have been debating this subject as word of mills being more receptive to negotiate steel pricing has been leaking out into the market. On Tuesday of this week, SMU published an article […]
Another complication has hit Essar Steel Algoma in its efforts to restructure and pull its way out of CCAA protection. The United Steelworkers Local 2251 has been offered a new contract that asks hourly workers to accept a 10 percent wage cut, elimination of cost of living increases, and cuts to paid vacations. The local […]
Essar Steel Algoma is continuing its restructuring process into the New Year despite hopes it would emerge from CCAA protection by the end of 2016. The year ended with the Term Loan Bidders trying to negotiate a deal to purchase Algoma and secure approval from the United Steelworkers. Algoma’s DIP financing will expire as of […]
United Steelworkers Local 2251 wants clarification from the Ontario court on whether it has permission to talk with Essar Global backed Ontario Steelworks about its bid for Essar Steel Algoma. Local 2251 favors a bid by Ontario Steelworks saying it would preserve the pension plan and union rights under the collective agreement. In July, the […]
Nucor Plate Mill Group was the first of the plate mills to reach out to their customers and advise them of their intention to take plate prices up by $50 per ton. On Tuesday of this week, Nucor sent a letter via email to their customers stating, “Due to current market dynamics, plate pricing has […]
On Wednesday of this week I participated in the monthly HARDI conference call (see article in tonight’s newsletter). During the call one of the executives from an east coast HVAC wholesaler told the group that he didn’t believe prices could or would move much higher from here. I disagreed with him. One of the justifications […]
With all of the domestic steel mills announcing $30 per ton price increases either late last week or early this week, the industry is waiting to see if there was a surge of orders and how those orders have impacted lead times. Everyone knows if lead times begin to extend then buyers will have no […]
On Friday morning US Steel got the ball rolling by announcing a $30 per ton price increase on all spot sales of flat rolled steel (hot rolled, cold rolled and coated products). Before the afternoon was out two other steel mills followed: Nucor and California Steel Industries. On Monday a number of mills were heard […]
Essar Steel Algoma has filed a legal proceeding against Essar Global Fund and its affiliates charging that the Essar Group has engaged in a course of conduct that consistently preferred the interests of the Essar Group and, in particular, Essar Global Fund, to those of Algoma and its stakeholders. This conduct, charges Algoma, includes the […]
Essar Steel Algoma is approaching the end of one year of protection under the Canada’s Companies Creditors Arrangement Act. The company entered protection on November 9, 2015. The latest court monitor report by Brian Denega, senior vice principle of Ernst & Young, shows the company maintaining its production and stocking up on iron ore for […]