Written by: John Packard I have been involved in the flat rolled steel industry since 1977. I cannot recall another time during those 36 years in the business when the domestic steel mills have announced two significant price increases within six weeks of one another – with the target minimum base price being exactly the […]
Steel buyers are scratching their heads while steel mills begin to line up announcing identical $50 per ton price increases on all flat rolled products. AK Steel was the first to follow U.S. Steel when they put out a press release advising their customers of their intention to raise spot prices by a minimum of […]
Question is can TK get two or more mills in a bidding war? Our sources advise SMU that the binding bids for the ThyssenKrupp Americas plants (Calvert, Alabama and CSA in Brazil) – the ones which truly count – are to be submitted by the end of this week. There are a number of prospective […]
Combination of higher zinc spot prices, competitive extras and higher zinc premiums are squeezing coating lines Galvanized converters are struggling to compete against mills with lower coating extras as LME Zinc spot prices have climbed from the low $.80’s per pound to recent high’s close to $1.00 per pound. Over the past few trading days […]
I was watching the daily results from our SMU steel survey which began on Monday of this week. I found it curious those working on Monday (a holiday to some, but not all in the U.S.) were much more negative than those who responded to our survey as the week progressed. Our SMU Steel Buyers […]
Written by: Sandy Williams The Arkansas Senate and House questioned a panel of economic development and finance officials last week on plans for the $1.1 billion Big River Steel project in Osceola, Ark. The meetings were a preliminary step in legislature approval of a $125 million bond issue for the proposed steel plant. The state’s […]
Written by: John Packard & Sandy Williams “Clear preference for cash” ThyssenKrupp AG officials declined to talk about the Steel Americas sale during their 1st Quarter 2013 earnings conference call, but CFO Guido Kerkhoff said he can say that the company has a “clear preference for cash” and that the bidders understand that message. The […]
Even as prices “firm” a bit from where they were one week ago, our SMU Price Momentum Indicator remains stuck in Neutral for the 10th consecutive week due to the following factors. We always prefer to give the domestic mills an opportunity to sell their price increases into the marketplace, so we automatically move to […]
Dear Editor, Once again, both Nucor and US Steel in their quarterly earnings calls partially blamed imports for their less than stellar results, and frankly, this is getting old. For the record, it is NOT illegal to import steel into the United States. It might be illegal if those imports were dumped (meaning sold below […]
As if the south is not already flooded with flat rolled steel mills, Arkansas Governor Mike Beebe and Big River Steel CEO John Correnti announced earlier today that if the bonds are approved by the Arkansas legislature a new $1 billion steel mill will be built in Arkansas. Details were lacking regarding the type of […]
Written by: Sandy Williams Nucor Corporation announced today that fourth quarter earnings were $136.9 million and flat compared to net earnings of $137.1 million in the same quarter of 2011. Earnings were up in the fourth quarter from $110.3 million in the third quarter of 2012. Total net earnings for 2012 were $504.6 million, compared […]
U.S. Steel verbally began telling their U.S. customers of their intention of raising spot flat rolled prices by $50 per ton. Price increase letters were sent to their customers by Nucor and NLMK USA as they advised their customers of their intention of raising flat rolled spot prices by a minimum of $50 per ton. […]
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 […]
SMU has been asked about the status of the negotiations regarding the sale of the ThyssenKrupp Steel Americas assets. This includes ThyssenKrupp Steel USA and their sister facility in Brazil which produces slabs – CSA. We understand the due diligence process continues and a number of mills have been through both facilities. Based on SMU […]