The news today that U.S. Steel plans to purchase a 49.9 percent interest in Big River Steel, with an option to buy the rest within the next four years, surprised the market. But most of the steel buyers polled by Steel Market Update view the pairing of one of the nation’s oldest integrated producers with […]
U.S. Steel did what many analysts thought was impossible – they announced they are acquiring a 49.9 percent interest in Big River Steel. I wrote about this last week as a possibility and mentioned some of the reasons at that time why this deal might happen. According to Big River Steel’s announcement, the $700 million […]
Virgin steel is made with iron ore, coke and limestone. It was done that way, and only that way, for many decades. Then along came the “mini” mills. So-called minimills recycle ferrous scrap, mixing it with pig iron or other iron units and melting it down in large electric arc furnaces to produce new steel. […]
Virgin steel is made with iron ore, coke and limestone. It was done that way, and only that way, for many decades. Then along came the “mini” mills. So-called minimills recycle ferrous scrap, mixing it with pig iron or other iron units and melting it down in large electric arc furnaces to produce new steel. […]
I received numerous notes regarding a hot strip mill outage at AMNS Calvert, which began last week. Based on reports from steel buyers, the HSM outage was expected to last for about one week. We asked ArcelorMittal for information and confirmation yesterday, but they failed to respond. Today, we received information that the Calvert lead […]
U.S. Steel is feeling the pain of falling steel prices and deteriorating market conditions. The company expects an earnings loss of 35 cents per diluted share for the third quarter of 2019 compared to a profit of 39 cents per share in the second quarter. The company followed Nucor and Steel Dynamics in lowering guidance […]
Nucor expects a weaker performance from its steel mills segment in the third quarter due to lower prices for sheet and plate steel. “Although we still see stability in most of the end-use markets that we serve, there has been some softening in automotive, agricultural products and power transmission markets,” said the company in guidance […]
By CRU Senior Analyst Ryan Smith Most people believe that minimills, which remelt scrap in electric arc furnaces, have a big cost advantage over integrated mills, which feed ore and coking coal into giant blast furnaces. But such conventional thinking is an oversimplification of the cost comparison. Based on site costs alone, and where steelmaking […]
A number of maintenance outages are scheduled at U.S. steel mills in the coming months with the majority to occur in October. Blast furnaces at AK Steel Dearborn, ArcelorMittal Cleveland and Burns Harbor, and U.S. Steel Gary Works are scheduled for maintenance in October, representing an estimated 495,050 tons of steel capacity temporarily removed from the […]
By CRU Senior Analyst Erik Hedborg Part two of our three-part series: What’s next for U.S. iron ore production? After a remarkably profitable 2018, the U.S. steel industry has suffered a setback in 2019 as steel prices have dropped sharply on weaker than expected demand. Steel margins have turned negative and production cuts have been […]
Nucor Corp. has announced a change in leadership as part of its planned succession process. John J. Ferriola, 67, will retire as Chairman and Chief Executive Officer on Dec. 31. Leon J. Topalian, 51, was named President and Chief Operating Officer, effective Sept. 5, and will succeed Ferriola as CEO on Jan. 1, 2020. Ferriola […]
CHARLOTTE, N.C., Sept. 6, 2019 /PRNewswire/ — Nucor Corporation (NYSE: NUE) announced today that John J. Ferriola, 67, will retire as Chairman and Chief Executive Officer (CEO) on December 31, 2019 and that the Board of Directors elected Leon J. Topalian, 51, to be President and Chief Operating Officer, effective September 5, 2019, and to […]
Hurricanes are a yearly occurrence for the southern U.S., taking huge tolls on property and lives and causing major disruption for the shipping industry. Hurricane Dorian, still churning its way up the East Coast, is the latest example. In preparation for Hurricane Dorian, Florida manufacturers rushed to get goods shipped North and out of flood […]
Steel Market Update received the following letter from a trading company executive and we thought it should be shared with our readers: I was just reading your article concerning Section 232 and came up with the following short conclusions: The damage of Section 232 to the integrated mills is done. The windfall profit reaped by […]
As I write my “final thoughts” for Tuesday evening’s issue of Steel Market Update, I am in Stuart, Fla., and there is a hurricane located about 80 miles due east in the Bahamas. It is Monday and I expect there will be limited power or mobility come Tuesday, so I am trying to be a […]
On Thursday, Aug. 29, the Nucor Sheet Mill Group advised customers: “Consistent with our practice to monitor the cost of zinc, we have revised our galvanized coating weight extras effective with orders acknowledged for week ending Oct. 5, 2019. Price extras can be accessed under the ‘Sheet’ tab at www.nucornow.com/announcements. Please contact your Nucor District […]
Nucor has received more than 2,300 applicants for 250 positions at its $400 million steel plant in Sedalia, Mo. The rebar plant is expected to open in November. Jessica Craig, Sedalia-Pettis County economic development executive director, says 153 employees have already been hired, some coming from as far away as Columbia and Kansas City, more […]
U.S. Steel raised industry eyebrows earlier this month when it informed its U.S. sales force that it would no longer use index-based pricing effective with its 2020 contracts. Would other mills climb on the bandwagon? And if so, what might that mean for steel prices? Based on comments from chief executives of other industry-leading mills, […]
The steel industry enjoyed a profitable first half of 2018 due to a strong economy and tariffs on imports that drove up domestic prices. The welcome windfall prompted several companies to commit large investments toward expansion and modernization of their facilities. In all, about 31 million net tons of new steel capacity could potentially come […]
By CRU Principal Analyst Josh Spoores U.S. Steel recently announced its intent to withdraw from spot market-linked adjustable price contracts in 2020 (i.e. contracts where the price moves with the spot market in some way). The following offers insight on the use of such contracts and what may come about if the intended change is […]
Written by: John Packard, President & CEO, Steel Market Update Seven days to go… Seven days before the beginning of the 2019 SMU Steel Summit Conference in Atlanta. I have spoken to almost every single speaker, interfaced with the CRU Events team in London as well as our SMU team. All is going as planned. […]
As mentioned above, it is crunch time for me and my team as we prepare for the conference, now one week away. I want to emphasize SMU will have a major announcement at the conference on Monday as we roll out our Service Center Inventories on Hand, on Order, Shipments and an analysis of what […]
The following editorial is by Allan Golombek, a Senior Director at the White House Writers Group, and was published on Aug. 12, 2019 by RealClearMarkets. The steel industry should have listened to the founder of Nucor. In 1986, Ken Iverson pointed out that protectionist measures to save the American steel industry had not had the desired […]
Electric arc furnace minimills may have a cost advantage in steel production today, but there are still 19 traditional blast furnaces going strong in the United States. Blast furnaces dominate about three-fourths of global steelmaking, but only three steel producers in the U.S. currently are using BF or basic oxygen furnace technology: U.S. Steel, ArcelorMittal […]
I received a call from the Congressional Quarterly today asking my opinion on steel prices, trade cases, capacity being added to the marketplace, etc. I did answer his questions as accurately as I could, which in many cases are subject to the decisions being made at various steel mills around North America, and whether those […]
As with any mill announcement, be it price, changes in production or in the case of the U.S. Steel’s announcement about how they are going to handle contracts going forward, there are always mixed opinions from steel buyers and from the other steel mills. This afternoon, Steel Market Update, as an index provider, spent a […]
As with any mill announcement, be it price, changes in production or in the case of the U.S. Steel’s announcement about how they are going to handle contracts going forward, there are always mixed opinions from steel buyers and from the other steel mills. This afternoon, Steel Market Update, as an index provider, spent a […]
North America’s plate mills have announced their second round of price increases in less than three weeks, seeking another $40 per ton ($2/cwt). Nucor’s Plate Mill Group was the first to inform customers of the change on Friday, prompting similar announcements by most other mills on Monday. SSAB Americas advised customers it is increasing transaction […]
Nearly 1,000 executives are registered with just two weeks to go before the start of the 2019 SMU Steel Summit Conference. We continue to see strong interest in this year’s event, which will be held in Atlanta on Aug. 26-28. Once again, the Georgia International Convention Center will be the home of this, our 9th […]
Nucor’s Plate Mill Group informed customers on Friday that it is raising the price of carbon, alloy and heat-treated plate by $40 per ton ($2/cwt), effective immediately on all new and unconfirmed orders. This is Nucor’s second price hike on plate products in the past two weeks, following on a $40 increase July 26. Steel […]