Stelco Holdings, Inc., closed its initial public offering today, successfully raising $230 million to be used for select capital investments, new product development and early payments to pension trusts. The 13.5 million shares were offered at a price of $17 per share. As of midday Friday, the stock was trading around $19.50 per share. Bedrock […]
Chemcoaters and its Eco-Green Coatings subsidiary say they are winning over skeptics who doubt the company’s claims it can dramatically lower the cost of galvanized steel with its InterCoat ChemGuard coating. Mike Tieri, vice president of sales and marketing for the Gary, Ind., toll coater, says the product continues to gain converts. “There’s a Who’s […]
U.S. Steel is undertaking a massive asset revitalization program to reduce unplanned outages and improve profitability and competitiveness. The company plans to invest approximately $1.2 billion from 2017 through 2020 on repairs and upgrades. By 2020, slab production capability at Gary Works, Great Lakes Works and Mon Valley works will be increased by 1 million […]
Allegheny Technologies, Inc., has agreed to form a 50-50 joint venture with an affiliate of China’s Tsingshan Group to manufacture and sell 60-inch-wide stainless sheet in North America. Tsingshan is the world’s largest stainless steel producer. The joint venture, which still needs regulatory approval, expects to begin shipping products in early 2018. Tsingshan’s operation in […]
AK Steel reported a net loss of $5.8 million in the third quarter compared to net income of $50.9 million in Q3 2016. Results were impacted by $13.1 million in acquisition and debt refinancing costs and a LIFO charge of $49.0 million, compared to a LIFO credit of $24.2 million in the prior-year third quarter. […]
NLMK USA posted revenue of $424 million in the third quarter, a 3.0 percent decrease from the second quarter due to a 5.0 percent slide in the average sales price. Shipments increased 2 percent to 558,000 metric tons. EBITDA for the segment was $38 million, down 9.0 percent from the second quarter due to higher […]
Economic indicators of manufacturing activity are still healthy overall and portend well for the balance of this year. This report summarizes seven data sources that describe the state of manufacturing in the U.S. We have reported on most of these separately in our Steel Market Update publications, and therefore will be brief in this summary. […]
Steel Market Update (SMU) found steel buyers receptive to speaking their minds on how various steel mills are responding to the price increase announcements made last week. It appears mills with shorter lead times are perhaps a little more receptive to waiving part or all of the increases. Other mills have better order books and […]
The volume of light vehicle assemblies in the U.S. and Canada is declining at more than 15 percent per year as Mexico’s volume is increasing by 7.7 percent, according to the latest Steel Market Update analysis of auto production in the NAFTA region. U.S. Vehicle Sales: U.S. new-vehicle sales surged in September to 18.6 million […]
ArcelorMittal is showing interest in buying the bankrupt India mill Bhushan Steel. Bhushan has a strong presence in the automotive steel market and has a production capacity of 5.6 million metric tons annually. Its debt is estimated at about $6.9 billion. Acquisition of Bhushan would give ArcelorMittal a foothold in India’s auto-grade steel market, which […]
Steel Dynamics and CEO Mark Millett are expecting a tighter steel market in the fourth quarter. After surging ahead of possible Section 232 trade action, import levels have declined and, coupled with strengthening order rates and longer lead times, steel prices are expected to appreciate significantly, said Millet in remarks during the company’s quarterly conference […]
The delay by the Trump administration in making a decision on Section 232 is allowing further damage to the steel industry, said Nucor CEO, Chairman and President John Ferriola during the company’s third-quarter conference call. Ferriola said he is not surprised by the surge of imports that have come into the U.S. since spring. Countries […]
The American Automotive Policy Council is challenging data that Commerce Secretary Wilbur Ross cited in his bid to raise the NAFTA auto rules of origin. In a September report, Ross used data from 1995 to 2011 in an effort to “debunk the claim that U.S. content in the form of parts is so high that […]
Labor rights need to be at the forefront of NAFTA talks, assert leaders of the United Steelworkers and the United Autoworkers. In a joint statement on Oct. 12, United Steelworkers International President Leo W. Gerard and USW Canadian National Director Ken Neumann challenged negotiators to craft a NAFTA agreement that “will raise standards, ensure they […]
It’s on the table: the U.S. proposal for rules of origin for NAFTA automobiles. On Friday, the Trump administration made its demand for 50 percent U.S. content in NAFTA-produced cars and trucks and an increase of North American content from 65.2 percent to 85 percent. The increase for U.S. content would be made within the […]
What goes around comes around, as they say. In the case of the ferrous scrap market, what goes around and comes around again and again are residuals such as copper that complicate the steelmaking process and threaten to erode some of the competitive cost advantage now held by minimills. Minimill steelmaking has transformed the steel […]
The fourth round of NAFTA talks is under way in Washington with some negotiators fearing the demise of the 20-year-old agreement. “There are several poison pill proposals still on the table that could doom the entire deal,” said Tom Donohue, CEO of the U.S. Chamber of Commerce in a speech in Mexico City on Tuesday. […]
Reliance Steel & Aluminum Co. and wholly-owned subsidiary Diamond Manufacturing Co. announced the acquisition of Ferguson Perforating Co., effective Oct. 2. Los Angeles-based Reliance is the largest service center company in North America. Ferguson specializes in producing highly engineered and complex perforated metal for diverse end markets ranging from aerospace and automotive to industrial machinery, […]
NAFTA negotiations are about to get even more contentious with a proposal by the Trump administration to increase U.S. domestic content in autos to 50 percent. The administration also proposes increasing the NAFTA regional content requirement to 85 percent from the current 62.5 percent, said sources to Inside U.S. Trade. The administration is facing tough […]
Auto sales rebounded in September, jumping 6.1 percent to more than 1.5 million vehicles sold, and surpassing analyst expectations. Kelly Blue Book projected a sales growth of 1.0 percent while Edmunds expected an increase of only 0.4 percent. A boost in automotive sales came after Hurricane Harvey and is expected to continue through October and […]
Two new hot strip mills are in the works for the Mexican steel industry. Both ArcelorMittal and Ternium announced plans this week to make investments in their facilities to meet growing demand. The announcements coincide with decrees by Mexican President Enrique Peña Nieto creating three special economic zones that offer tax breaks to companies investing […]
Economic indicators of manufacturing activity are still healthy overall and portend well for the balance of this year. This report summarizes seven data sources that describe the state of manufacturing in the U.S. We have reported on most of these separately in our Steel Market Update publications, therefore will be brief in this summary. We […]
Big River Steel presented a check for $50 million to Arkansas Governer Asa Hutchinson for full repayment of a loan from the State of Arkansas—and did it 17 years early. The early repayment of this $50 million loan is a strong indication of the financial strength of Big River Steel and reaffirms my confidence in […]
The ferrous scrap market is softening and SMU’s sources expect prices to drop by $10 to $20 per gross ton in October. Domestic mills are beginning to cancel September orders that have not been completed (delivered) by the end of the month. This is a sure sign the mills believe ferrous scrap negotiations for October […]
Hurricanes Harvey and Irma were devastating for the many Americans still struggling to recover from the damage. But for the scrap metal market, contrary to common belief, the storms will be a mere blip. “Everyone’s immediate reaction to Harvey is, ‘Oh, there will be so much scrap coming out of Houston, prices will drop.’ The […]
Union members at AK Steel Rockport Works have ratified a new four-year labor agreement. The agreement covers 319 hourly production employees of the United Auto Workers (UAW) and will be in effect until Sept. 30, 2021. Rockport Works produces a full range of cold rolled carbon, coated and stainless steels, with many of the products […]
Despite a run of disruptions during its first quarter, Worthington CEO and Chairman John McConnell is optimistic about the new fiscal year. “We believe that most of the markets we serve are healthy with some showing more strength than others,” said McConnell. “We are off to a good start in fiscal 2018.” Worthington Industries’ earnings […]
Canadian steel producer Stelco Holdings will go public with the sale of at least $150 million in shares. The company filed for an initial public offering on Wednesday with security regulators in Canada. Stelco, the former U.S. Steel Canada, was acquired out of bankruptcy by Bedrock Industries in June. The restructuring relieved Stelco of $3 […]
U.S. Steel and Kobe Steel announced plans to expand the galvanizing line at their joint venture PRO-TEC Coating Co. in Leipsic, Ohio. Construction will begin in the fourth quarter on a new continuous galvanizing line in response to demand for advanced high-strength steels. The $400 million CGL will have a yearly capacity of 500,000 tons […]
U.S. content in NAFTA automobiles is shrinking and contributing to the trade deficit America has with Canada and Mexico, according to Secretary of Commerce Wilbur Ross. In an editorial for the Washington Post, Ross cites a new study analyzing data from 1995 to 2011 that indicates U.S.-produced content in manufactured goods imported from Canada fell […]