The new labor agreement between the United Steelworkers and ArcelorMittal USA has yet to be voted on but highlights of the contract reveal that the parties agreed to the idling of certain finishing lines at the North American operations. According to the union contract summary, the lines include the 84-inch Hot Strip Mill at Indiana […]
ArcelorMittal USA and Cliffs Natural Resources have entered into a new long-term iron ore supply agreement that will run through 2026. The new agreement replaces two existing agreements that expire Dec. 2016 and Jan. 2017 and fills the entirety of ArcelorMittal’s pellet purchase requirements from the previous contracts. Cliffs Natural Resources will supply 7 to […]
Whenever SMU speaks to steel buyers about flat rolled steel pricing cycles we inevitably hear about how the domestic steel mills have a tendency to over-correct to both the low and the high sides of the cycle (boom/bust). In the process there seems to be an assurance that market volatility will continue to be significant […]
Steel Market Update received a note from trade attorney Lewis E. Leibowitz regarding an “ex parte” memorandum from former Michigan Governor and current President of the Business Rountable, John Engler, about the AD investigation of imports of cold rolled steel from Japan. Mr. Engler was intervening on behalf of Steelcase and their subsidiary PolyVision which […]
Today, the Department of Commerce announced its affirmative final determinations in the AD investigations of imports of certain cold-rolled steel flat products (cold-rolled steel) from China and Japan, and CVD investigation of imports of cold-rolled steel from China. Commerce determined imports of cold-rolled steel from China and Japan have been sold in the U.S. at […]
“U.S. Steel Sinks as Another Wave of Cheap Imports Predicted” was the headline in Bloomberg on Friday morning. The article cites Axiom Capital Research analyst Gordon Johnson who wrote to his clients, “A boat load of imports are likely on the way.” This opinion permeates the financial community and the pessimism is, in our opinion, […]
On May 17, 2016, the Department of Commerce is scheduled to announce its final determinations in the AD investigations of imports of certain cold-rolled steel flat products from China and Japan and CVD investigation of imports of certain cold-rolled steel flat products from China. The investigations cover certain cold-rolled, flat-rolled, steel products, neither clad, plated, […]
The United Steelworkers will receive the final Contract Summary of the proposed agreement with ArcelorMittal USA starting around May 23. The summary will include a ballot and voting instructions. Ratification ballots must returned by June 21 for collection and counting on June 23, 2016. Pete Trinidad, Sr., President USW Local 6787 told members in a […]
Auto/Steel Partnership – May 11, 2016 — In an effort to assist automakers in meeting stringent fuel economy requirements, the Auto/Steel Partnership (A/SP) announced today the Hemming of Thin Gauge Advanced High-Strength Steel (AHSS) project achieved a 30 percent weight savings using thinner gauge AHSS for automotive closure panels. “The Hemming team achieved positive results […]
Scrap prices settled higher by $20 to $30 per gross ton delivered to the domestic steel mills, according to Steel Market Update (SMU) scrap sources. The rise in ferrous scrap prices has been one of the driving factors behind the flat rolled price increases announced by the domestic steel industry over the past few months. […]
ArcelorMittal narrowed its losses in first quarter 2015 to $416 million from $728 million a year ago. Total steel shipments for the company were 21.5 million tonnes. “Clearly, the market conditions have improved since we reported full year results in early February. Rising steel prices in China have supported prices globally and this has been […]
In an email to their customers earlier today, ArcelorMittal USA became the first mill to announce new base price minimums on flat rolled steel with the opening of their July order book. The new steel price minimums set by AM are as follows: Hot Rolled = $610 per ton ($30.50/cwt)Cold Rolled = $800 per ton […]
In case there is some confusion, flat rolled steel prices are moving higher and, with today’s announcement by ArcelorMittal it is only a matter of time before benchmark hot rolled breaches $600 per ton and cold rolled and coated breach $800 per ton (base plus extras). It has been a very difficult market to gauge […]
The move by ArcelorMittal USA today was anticipated and the price levels noted in their increase email to their customers are in line with expectations. I expect the rest of the mills will follow along within $10-$20 per ton of the levels suggested by AMUSA. Some of the mills may wait for scrap prices to […]
The United Steelworkers revealed highlights on Friday of its tentative contract with ArcelorMittal USA. The settlement followed eight months of negotiations while union members continued to work under the terms of the previous expired contract. The new contract does not include a pay raise but does maintain the no premium status for health care benefits […]
On April 29, 2016, the Department of Commerce initiated an antidumping duty (AD) investigation of imports of certain carbon and alloy steel cut-to-length plate (CTL plate) from Austria, Belgium, Brazil, China, France, Germany, Italy, Japan, Korea, South Africa, Taiwan, and Turkey, and countervailing duty (CVD) investigations of imports of CTL plate from Brazil, China, and […]
Cliffs Natural Resources first quarter earnings were stronger than expected by many analysts. The company posted net income of $117 million compared to a net loss of $762 million a year ago. Lourenco Goncalves, Cliffs’ Chairman, President and Chief Executive Officer, said, “Cliffs’ first-quarter results clearly demonstrate how far we have come on our turnaround. […]
Updated April 28, 2016 – The United Steelworkers announced Wednesday that they have a tentative agreement contract agreement with ArcelorMittal USA. “After almost a year of difficult bargaining that continued eight months past the expiration of our previous contract, our committee’s hard work and dedication have resulted in a tentative agreement with ArcelorMittal,” said USW […]
On Friday, US Steel announced a $60 per ton flat rolled steel price increase. This was the first US Steel announcement done in public in some time. The increase came in the form of a letter emailed to their customers. U.S. Steel did not provide minimum base price guidelines in their announcement although minimum price […]
I will be doing an article in Sunday evening’s newsletter about the AISI capacity utilization numbers. The AISI produces their “estimate” of steel production and the percentage of capacity utilization based on 50 percent (or fewer) of the mills reporting production data. I have considered not publishing the data at all because, in my opinion, […]
You will be hearing and seeing much more about whether China should be allowed to have “market economy” status. While I don’t pretend to be an expert on the subject, I am learning that as a market economy any trade suits against China would have to be conducted differently than what is currently being done […]
A week ago Steel Market Update reported that three domestic steel mills would file an antidumping suit against a number of foreign countries who have been exporting cut-to-length (CTL) plate to the United States. On Friday the three mills identified in our earlier reporting filed their petition. A trade petition against 12 countries was filed […]
Still no contract agreement for USW workers at ArcelorMittal who continue to work under terms of the previous labor contract that expired on September 1, 2015. In a text message update on March 18 the USW said the Committee was still bargaining over a few remaining important issues committee and that “unfair ArcelorMittal demands still […]
German steel giant and elevator manufacturer Thyssenkrupp is back in steel industry news again. The company will take full ownership of Companhia Siderúrgica do Atlantico (CSA) from Brazilian mining company Vale SA. Vale owns 27 percent of CSA and plans to sell it to Thyssenkrupp AG for a “symbolic price” while remaining sole supplier of […]
According to ArcelorMittal USA comments made during the Association of Steel Distributors meeting over the weekend which SMU attended, a trade case on steel plate imports will be filed within the next few weeks. ArcelorMittal along with Nucor and SSAB have been working on the documentation for an extended period of time and our understanding […]
ArcelorMittal has idled the hot strip mill at Indiana Harbor East Chicago but will not lay off the 300 affected workers. United Steelworkers District 7 Director Mike Millsap said the union is working to re-assign workers to East Chicago, Burns Harbor or Riverdale. ArcelorMittal spokeswoman Mary Beth Holdford said the company “expects to optimize our […]
Tata Steel’s exit from the United Kingdom may be a precursor to a merger with Thyssenkrupp. Wall Street Journal reports Tata and Thyssenkrupp have been in high-level talks for more than a year about combining their European steel operations. Whether the two companies are considering a buyout or forming a joint venture is unclear at […]
ArcelorMittal announced it will sell its LaPlace and Vinton Long Carbon steel facilities to an affiliate of Black Diamond Capital Management. The LaPlace Louisiana mini-mill includes an electric arc furnace, ladle metallurgy station, two four-strand continuous billet casters, and a fifteen-stand Danieli medium section mill. The LaPlace facility, along with a rolling mill in Harriman, […]
Earlier this week Nucor Plate Group and SSAB announced price increases on plate products (with SSAB also including hot rolled coil) of $40 per ton. Over the past few months we have seen the plate mills lead the charge with sheet mills following close behind. This week was no different. Three mills announced flat rolled […]
ArcelorMittal has offered its Trinidad steel mill to the government of Trinidad & Tobago for price of $1.00, according to Ramumar Narinesingh, vice-president of The Steel Workers Union (SWUTT). The one dollar price comes with $1.3 billion of debt, however, and the question of whether it would be a good or bad investment for the […]