Members of the USW were headed to court today for the hearing regarding the sale of Stelco, the former US Steel Canada, to Bedrock Industries. The sale has the support of the Ontario government and Stelco but is meeting some resistance from union workers and the City of Hamilton. The USW says the proposal leaves […]
US Steel announced today that it will begin processing slabs on the currently idled hot strip mill at Granite City Works in Granite City, Ill., in mid-February 2017. The slabs for the mill will be sourced from US Steel’s own domestic facilities. US Steel said in a press release that it is making the adjustment […]
US Steel CEO Mario Longhi told CNBC the company may be able to bring back jobs if regulations and tax laws are improved under the new administration. I’d be more than happy to bring back the employees we’ve been forced to lay off during that depressive period,” he said, which “could be close to 10,000 […]
German steel maker Thyssenkrupp revealed technical trade secrets were stolen in a cyber attack earlier this year. “ThyssenKrupp has become the target of a massive cyber attack,” the company said in a statement on Thursday. Breaches at its plant engineering division were discovered in April and traced back to February. The attacks were attributed to […]
US Steel Canada has officially changed its name back to the Steel Company of Canada or, as better known, Stelco, during a ceremony held at Hamilton Works on Friday. The newly designed Stelco flags were raised alongside the flag of Canada as two young girls sang the Canadian national anthem. A similar ceremony was held […]
US Steel Canada has been granted an extension of its CCAA protection while it hammers out a deal with suitor Bedrock Industries. The stay period for USSC was due to terminate on November 30, 2016 and has now been extended to March 31, 2017. According to the 32nd court monitor’s report by Alex Morrison, US […]
There has been a great deal of discussion on how the Trump administration will affect manufacturing and the steel industry in the coming months. Steel Market Update asked AISI and domestic steel mills what regulations they would like to see repealed under the new administration and what kind of environment for steel and manufacturing they […]
Once each quarter we publish the official statistics for Chinese GDP, industrial production, consumer price inflation and fixed asset investment. Currently available GDP data is through the third quarter, other data included here is through October. Many analysts don’t believe these Party self-serving figures but we include them in our reports because of the importance […]
According to the latest data released from the U.S. Department of Commerce and the American Iron and Steel Institute, apparent steel supply for the month of September 2016 was 8,106,754 net tons. Apparent steel supply is calculated by adding domestic steel shipments and finished US steel imports, then subtracting total US steel exports. September apparent […]
The U.S. International Trade Commission delivered a surprising decision in the US Steel Section 337 case against China. In its complaint, US Steel alleged that China was violating antitrust laws in a “conspiracy to fix prices and control output and export volumes, the threat or effect of which is to restrain or monopolize trade and […]
US Steel announced new coating extras for galvanized steel on Tuesday. A letter from the company to customers stated the new extras are due to rising zinc prices. The letter from US Steel to its customers is reproduced below as well as the new coating extras chart:
After ArcelorMittal USA announced specific minimum base price levels on Monday we had three steel mills come out with flat rolled steel price announcements on Tuesday. However, none of the mills advised of specific base price levels but rather announced dollar per ton increases. The three mills are Nucor, AK Steel and NLMK USA. Nucor […]
On Monday the U.S. Department of Commerce initiated an investigation against China for trying to circumvent antidumping and countervailing duty orders. The DOC was responding to petitions filed by the domestic steel industry on cold rolled. The DOC also initiated an investigation on CORE (corrosion resistant) which SMU will cover in a separate article. There […]
On Monday the U.S. Department of Commerce, responding to petitions from ArcelorMittal, Nucor, US Steel, AK Steel, Steel Dynamics and California Steel, initiated an inquiry of circumvention of the antidumping (AD) and countervailing duty (CVD) orders against China. The probe will be for hot rolled and cold rolled substrate supplied by China to Vietnam for […]
US Steel has been at the forefront of initiating trade cases and working to strengthen enforcement laws. During the US Steel earnings call, CEO Mario Longhi made the following comments on trade. “We are pleased with the progress we have made so far on the trade front, but much more work needs to be done […]
US Steel reported third quarter net earnings of $51 million compared to a Q2 loss of $46 million and Q3 2015 net loss of $173 million. Net sales in third quarter increased to $2.7 billion, with $114 million in sales coming from the flat-rolled segment and $81 million from US Steel Europe. Sales benefited from […]
US Steel Corp announced today that it has agreed to terms proposed with Bedrock Industries Group for the sale and transition of ownership of US Steel Canada. The transaction is subject to customary court approvals. US Steel Canada has been in Companies Creditor Arrangement Act (CCAA) proceedings since Sept. 16, 2014. Under terms of the […]
The following “letter to the editor” was prompted by comments made by Lourenco Goncalves CEO of Cliffs Natural Resources during his earnings conference call with analysts and reported on by Steel Market Update (and others). The comments below were made by an executive at a domestic steel service center in response to Mr. Goncalves: I’m […]
AISI, Washington, D.C. (Oct. 27, 2016) – The American Iron and Steel Institute (AISI) today submitted comments to the Trade Policy Staff Committee (TPSC) on USTR’s 2017 National Trade Estimate Report (NTE) on Foreign Trade Barriers. This submission marks the fifth year in a row that AISI has documented the foreign trade barriers that distort […]
Steel Market Update (SMU) is adjusting our Price Momentum Indicator to “Higher” from Neutral. It is our opinion that flat rolled steel prices in the United States and Canada will move higher over the next 30 to 60 days. There are a number of reasons why we have chosen to make this move now, here […]
SSAB Americas, recorded a third quarter operating loss of SEK 73 million ($8.1 million) compared to a profit of SEK 162 million ($18 million) in Q2 2016. The loss was due mainly to the maintenance outage at Montpelier in the third quarter, higher variable costs, lower volumes and lower capacity utilization which was somewhat offset […]
With all of the domestic steel mills announcing $30 per ton price increases either late last week or early this week, the industry is waiting to see if there was a surge of orders and how those orders have impacted lead times. Everyone knows if lead times begin to extend then buyers will have no […]
On Friday morning US Steel got the ball rolling by announcing a $30 per ton price increase on all spot sales of flat rolled steel (hot rolled, cold rolled and coated products). Before the afternoon was out two other steel mills followed: Nucor and California Steel Industries. On Monday a number of mills were heard […]
Steel Market Update has been reporting flat rolled steel service centers had reached the point of “capitulation” earlier this month. History has shown that when the service centers reach the point of capitulation they tend to support flat rolled steel price increases being made by the domestic steel industry. Essentially, the steel distributors are attempting […]
On Friday morning US Steel became the first domestic steel producer to announce a flat rolled steel price increase. Later in the day Nucor and California Steel Industries (CSI) followed with similar announcements. SMU expects other steel mills to follow with announcements of their own as this new week gets underway. On October 21, 2016 […]
Steel Market Update (SMU) made two market adjustments on Friday afternoon (Friday, October 21st). We have adjusted the range on our hot rolled index to $440 per ton on the low end up to $500 per ton on the high side. Our average is now $470 per ton ($23.50.cwt). This is $10 per ton lower […]
Essar Global has teamed up with Cargill Inc. to make a bid for US Steel Canada, according to the Globe and Mail. Essar’s bid was rebuffed by USSC in June of 2016 and again as the entity Ontario Steel in August, despite the backing of the United Steelworkers. Bedrock Industries is the current favorite for […]
The final three holdouts in the Standard Iron Works v. ArcelorMittal et al. antitrust litigation have come to a settlement. Steel Dynamics, Nucor and SSAB have agreed to settle price-fixing claims for a combined total of $30 million. Steel Dynamics issued an announcement on Tuesday that it will pay $4.6 million in the class action […]
One of my habits when writing this newsletter is to hold my Final Thoughts until after the vast majority if not the entire newsletter is complete. At that point I try to absorb what has transpired through the day and many times that day flows well into the evening. I think this is one of […]
US Steel Canada court monitor Alex Morrison reported sales were good in August, resulting in revenue of CAD $144.6 million. EBITDA increased by $30.7 million from July. Shipments were up 19.7 percent year-over-year to 192,734 tons. The company has been successful in replacing sales to automotive customers that were lost when US Steel cut ties […]