Tag: Severstal NA

Unless you've been under a rock, you know by know that Nucor's published HR price for this week is $760 per short ton, down $65/st from the company’s $825/st a week ago. I could use more colorful words. But I think it’s safe to say that most of the market was not expecting this. For starters, US sheet mills never announce price decreases. (OK, not never. It has come to my attention that Severstal North America rescinded a price increase back on Feb. 14, 2012. And it caused quite the ruckus.)

SBQ producer Alton Steel Inc. (ASI) has appointed a new chief executive.

We had a big development this week with London-listed Russian steelmaker Evraz Plc announcing plans to sell its North American operations. A move like this has been rumored for some time. We’ve heard versions of it going back to Russia’s full-scale invasion of Ukraine in late February. Still, it was something of a shock to […]

Severstal is no longer shipping “anything” to the United States, a company spokeswoman said. The Russian steelmaker instead intends to “continue working with our partners who are not tied with obligations to US,” she said in an email to Steel Market Update. The comments come after the US Department of Treasury’s Office of Foreign Assets […]

Your college degree is not going to help you understand how the steel markets work. To do that you need to attend one of our Steel 101: Introduction to Steel Making & Market Fundamentals workshops. Our next workshop is being held in Davenport, Iowa on May 14-15, 2019. We choose our locations because our workshops […]

PITTSBURGH, AUGUST 10, 2016 – Esmark Steel Group, one of the nation’s largest processors and distributors of flat-rolled steel, steel fabrication manufacturing and tinplate production, today announced that Michael Ogrizovich, currently President of Esmark Steel Group, has been named a Director to the company’s Board of Directors and been promoted to Vice Chairman of Mill […]

Does the U.S. Steel purchase of the former Stelco facility (Hamilton and Lake Erie Works) rank up there with the Severstal and later RG Steel purchase of the former Sparrows Point, Wheeling-Pittsburgh and Warren facilities? I remember Saikat Day, who was the CEO of Severstal NA at the time, when speaking to our 2014 Steel […]

We are now one week away from our 5th Steel Summit Conference. As I have mentioned before, we will set a new record for attendance this year, potentially breaking last year’s record by 80 to 100 people. Our Steel Summit Conference continues to get accolades from those in the industry for the quality of our […]

Figure 1 shows historical gas and oil prices since January 2000. The daily spot price of West Texas Intermediate closed at $44.94 on August 10th after recovering to $59.53 on June 15th.   In the last two weeks WTI has declined by $2.23 according to the latest daily figure available from the Energy Information Administration, […]

I had an interesting email from one of our members who expressed an issue with the reduction of articles written by me. Here is a portion of the email, “When we first subscribed to your publication several years ago, we found that John P was doing most of the writing and he would stick his […]

Just last week there was an article about Dennis (DJ) Johnson and in his new position as Vice President, Transformation, at Worthington Industries.   Johnson joins others now at Worthington including Jim Mortensen, now Director Strategic Product Development and Pat Loney, Product Manager, Hot Rolled and Coated Products. You might think that most of the leadership […]

I am looking forward to traveling to South Carolina for our next Steel 101 workshop which is at the beginning of next week. I would like to recognize and thank Nucor and their Berkeley facility for allowing us to tour their flat rolled (sheet) and beam mills. This is the first time I personally will […]

2015 annual contract negotiations have begun, according to both manufacturers and service center steel buyers. The next month or two should be quite interesting as the process continues. Early reports are suggesting that the domestic steel mills may be more “flexible” in their flat rolled steel price negotiations than they were at this point in […]

Everyone continues to watch for how the consolidation of the Severstal NA assets (Dearborn and Columbus steel mills) will impact the flat rolled steel markets. Early indications are for shorter lead times out of the SDI Columbus facility and Dearborn lead times are shorter than the Middletown and Ashland plants for AK Steel. But, it […]

Steel Market Update (SMU) conducted our mid-September flat rolled steel market analysis this week. We invited slightly more than 600 companies to participate in the latest survey which analyzes various trends which affect the flat rolled steel market. One set of questions had to do with the consolidation of the steel mills as SDI and […]

Spot prices remained stable this week as steel buyers wait to see how the absorption of Severstal by AK Steel and Steel Dynamics will affect the marketplace.  It is anticipated that it could take 3-4 weeks before we get a clear indication as to how the commercial departments for each mill will integrate the former […]

On Friday, Saikat Dey and nine other executive managers who operated out of the Severstal Dearborn facility were relieved of their positions. SMU sources confirmed that the top two commercial people: Sachin Shivaram and the general manager of sales, Scott Gosselin, were on the list of those not retained as the facility prepares to be […]

Severstal North America reported strong growth in sales volume in the second quarter, up 6 percent quarter over quarter. Revenue of $1.06 billion was 4.9 percent higher than the previous quarter driven by higher sales volume. EBITDA was up a record 33.3 percent in second quarter to $100 million reflecting operational improvement at Severstal Dearborn […]

OAO Severstal posted a net loss of $661 million for second quarter that includes a non-cash loss estimate of $1.066 billion on the disposal of Severstal Dearborn, Severstal Columbus, and PBS Coal and a foreign exchange gain of $199 million. Excluding these items, Severstal would have posted a net profit of $206 million. Second quarter […]

Once per month, HARDI sponsors a conference call for those HARDI members who are involved with the sale and distribution of galvanized steel to the HVAC and related industries. Steel Market Update participates in these calls along with wholesalers around the United States and Canada. Since the last HARDI conference call we have seen a […]

Following the announcement of the sale of Severstal NA to AK Steel and Steel Dynamics, Severstal sent out a letter on Wednesday evening explaining the sale to their customers with assurance that the two mills would continue to run as scheduled over the next few months. A copy of the letter is below: Dear customer, […]

On Monday, July 21, 2014 OAO Severstal announced the sale of their two steel mills located in the United States for $2.325 billion. The two mills, Severstal Dearborn and Severstal Columbus were purchased by AK Steel and Steel Dynamics (SDI), respectively. The acquisition of the Severstal assets by two existing steel suppliers is being touted […]

For those of you who don’t realize it – Steel Market Update is conducting our mid-July market analysis this week. I have added a couple of questions about the sale of the Dearborn and Columbus steel mills. I will send out a reminder email first thing in the morning on Wednesday. If you receive an […]

Steel Market Update is well aware of the rumors which have been circulating regarding the potential sale of the Severstal North American steel mills. Late last week we learned from our sources that Steel Dynamics and AK Steel were close to purchasing the two U.S. steel mills owned by OAO Severstal out of Russia. Steel […]

In the last issue of Steel Market Update I warned that there are lots of rumors swamping the steel market as negotiations for Severstal NA heat up (or are perhaps already over) and Gallatin entertains bids on their mill (half owned by Gerdau and half ArcelorMittal). The other mill issue is the Chapter 15 (Canadian […]

Severstal NA has been actively informing their customers that they want hot rolled spot base prices to $700 per ton ($35.00/cwt) and cold rolled and coated to $820 per ton ($41.00/cwt). Other mills are mulling a move and we expect price announcements to be imminent. Whether specific base prices are announced or the mills go […]

Based on SMU sources we understand there are two steel mills, comprising three separate steel plants, that are for sale and could potentially change hands before the end of this calendar year. The two mills are Severstal NA and Gallatin. Severstal NA SMU understands the bids for Severstal NA were due this past Friday. Our […]

Severstal reported a spike in sales at its North America facilities in second quarter 2014. Severstal NA sold 1,248,084 tonnes (1.38 million net tons) of rolled products, up 6 percent from the previous quarter. Sales for the first half were up 7 percent to 2,430,839 tonnes (2.68 million net tons). The average price of rolled […]

For those of you who would like to read the fact sheet sent out by the International Trade Administration (ITA) which contains the US Department of Commerce Final Determination on the OCTG trade case you can click on this link. As I mentioned in one of the above articles, Roger Schagrin of Schagrin Associates is […]

Our sources close to the process are advising Steel Market Update that bids on the Severstal North America steel mill assets are due on July 2, 2014. If, and if is a big question with this potential transaction, the bids are acceptable to the Russian parent company, the deal to sell the mills could be […]