US Steel Corp. reported a net loss of $173 million for third quarter 2015. Results included a $53 million loss due to shutdown of the blast furnace and associated operations at Fairfield Works. It also included a charge of $10 million for pension obligations to US Steel Canada and $7 million in restructuring costs. In […]
I am aware that on October 23, 2015 the domestic steel mills filed allegations of critical circumstances on exports of hot rolled coil from four countries: Brazil, Australia, Japan and The Netherlands. I will have more details and statements from both buyers and sellers later this week. I wanted to spend time studying the affirmative […]
The USW is taking a brief break from talks with US Steel. In an Oct. 27 update, the USW said US Steel continues to demand “major changes to health care benefits that would amount to thousands of dollars per year in added costs” for active works and retirees. The parties also wrangling over contract provisions […]
US Steel has filed court documents seeking a process trial date of November 20 to request approval of repayment of $2.2 billion in debt that it claims is owed by US Steel Canada. The court date was delayed by other restructuring issues and has been hotly contested by the USW, former Stelco president Bob Milbourne, […]
After three days of non-stop packaging followed by 24 hours of non-stop cleaning we have finally departed our Georgia offices and are in transit (as I write) to our new location in Florida. It is a two day trip so if you call our office you may get a voice mail message – my apologies […]
Steel Market Update (SMU) asked a manufacturing company when they thought prices will stop dropping? Their response was both classic and profound, “Prices will stop going down, when they go up. Prices can’t go below absolute zero. Question then becomes as to what defines absolute zero…?” Flat rolled steel prices continued their march lower this […]
In September, vehicle sales reached a new post-recession high of almost 18.2 million units at a seasonally adjusted annual rate. This followed the August rate of 17.8 million units. Both at the time were the best pace since July 2005, when incentives caused sales to surge. Sales in September were 10 percent higher than the […]
The difference between auto industry and steel industry: the UAW has issue a notice to GM that they could walk out at midnight tonight (Sunday) if they don’t have a contract. The USW is content to work under the old contract for as long as they can get away with it since both US Steel […]
Steel earnings calls began this last week and all of them reference the downturn in the oil industry and its effect on production. Low oil prices, overcapacity, and resulting weak demand for OCTG products continues to force firms to adjust output and workforce. Vallourec Star Steel announced this week that it will begin a third […]
Figure 1 shows published data for the growth of GDP, industrial production and consumer prices through Q3 2015. The GDP and industrial production portions of this graph are three month moving averages. The growth of GDP was 6.9 percent in the third Q, beating forecasts for 6.8 percent growth, but decelerating to its slowest pace […]
The HARDI wholesalers held their monthly galvanized steel conference call earlier today. During the call the wholesalers provided insights into business conditions affecting the companies and discussed the status of the flat rolled steel markets. HARDI wholesalers supply galvanized sheet and coil steels to the mechanical contractors associated with residential and commercial construction in North […]
Cliffs Natural Resources is back pedaling after CEO Lourenco Goncalves said he would shut down a plant in the Iron Range if Essar Steel Minnesota goes into production. “If they go online, I will shut down a plant up there the same day,” Lourenco Goncalves said in an exclusive interview with the Mesabi Daily News […]
SMU was disappointed in two key data sets which were released this past week. The first was the MSCI service center shipment and inventories which indicated a weakening economy and a continuation of the high inventory levels at the U.S. distributors. The second was the import license data through the first 15 days of October […]
Flat rolled steel prices continued their downward spiral this past week based on our analysis of the four steel indexes followed by Steel Market Update. We will be watching prices closely over the next week or two to see if we breach the psychological $400 per ton number on benchmark hot rolled coil. We have […]
USW negotiations with ArcelorMittal and US Steel continue to be bogged down. The USW bargaining committee with ArcelorMittal will take a brief break this coming week to conduct discussions with local membership. “We urge ArcelorMittal management to use this time away from the table to consider the uncertainty and strain this unnecessarily long, drawn-out process […]
The Metal Service Center Institute (MSCI) released September shipments and inventories for U.S. distributors. We reported in Thursday evening’s issue that flat rolled steel shipments were weaker than expected while receipts were higher than expected. The combination of the two has driven our Apparent Excess to over 1 million net tons. The SMU Flat Rolled […]
We will begin our next flat rolled steel market analysis with an invitation to participate in our questionnaire going out at 8 AM on Monday morning. If you receive an invite please take a few minutes to click on the link and complete the questionnaire. Steel Market Update will be moving our headquarters over the […]
Essar Steel Algoma announced it has secured an alternate, interim iron ore supply and is withdrawing its motion for a Temporary Restraining Order against Cliffs Natural Resources. Essar will continue to pursue resolution of the matter of breach of contract through the court system. Cliffs Natural Resources, as of Oct. 5, canceled its 3 million […]
US Steel Canada and its parent company US Steel Corp. are parting ways but uncertainty about the future of the Canadian steel mill lingers. In a Superior Court decision last week, Justice Herman Wilton-Siegal agreed to sever the connection between the companies and allow US Steel Canada to suspend health care benefits to more than […]
Contract negotiations continue to progress at ArcelorMittal and US Steel but at a very slow rate. The USW reported that the ArcelorMittal bargaining committee reached a “basic understanding with the company on some non-economic issues.” At US Steel talks are at an impasse with the USW resisting concession demands. The bargaining committee headed home last […]
Earlier this year US Steel adjusted their coating extras and the long wait began for other mills to follow suit. In the meantime, spot zinc prices dropped below $0.74 per pound before bouncing back to $0.82 per pound over the past few days. Over the past couple of weeks most of the domestic mills have […]
Global steel demand will decrease by -1.7 percent to 1,513 million tonnes in 2015, according to the World Steel Association’s Short Range Outlook for 2015 and 2016. The 2015 decrease follows a gain of 0.7 percent in 2014, the same amount of growth that WSA expects to see again in 2016 as steel demand reaches […]
Hamilton MPs are urging legal action against US Steel Canada to force them to honor pension obligations. “It is unacceptable that US Steel Canada is abandoning these workers and their families,” said Industry Minister James Moore in a statement on the recent court decision that frees USSC from paying pension health benefits and property taxes. […]
We include here an abridged statement from the IMF that was released last week and in which the commodity situation looms large. Followed by our Steel Market Update data analysis and comments about the future of global and domestic steel demand through 2020. Transcript of the World Economic Outlook Press Conference Good morning. I have […]
Our next Steel 101: Introduction to Steel Making & Market Fundamentals workshop will be held in the Columbus, Mississippi area on January 19 and 20, 2016. This workshop will include a tour of the SDI Columbus steel mill. We are working on hotel information right now and hope to have the hotel selected by early […]
Late on Friday, a Canadian judge ruled U.S. Steel could sever ties with U.S. Steel Canada and that the Canadian facility would to forward as a new entity. The judge also ruled in favor of U.S. Steel as he permitted the company to suspend health care benefits to 20,600 pensioners as well as property taxes. […]
A debate has begun as to when flat rolled steel prices will bottom and begin to reverse course. Part of that dialogue is what will supply look like should US Steel go through with balancing their production by temporarily taking down their Granite City Works. This would be on top of the trade suits which […]
The Ontario Superior Court has reserved judgment on a plan by US Steel Corporation for the company and US Steel Canada to “go their separate ways.” Justice Herman J. Wilton Siegal said it is one of the toughest decisions he has had to make from the bench and will issue a summary of his decision […]
Cliffs Natural Resources has terminated its iron ore supply agreement with Essar Steel Algoma alleging Essar made multiple and material breaches under the agreement. “While the agreement has been terminated, Cliffs remains open to discussing supplying Essar with pellets on commercially reasonable terms consistent with a just-in-time iron ore supply arrangement,” said Cliffs in a […]
US Steel announced on Tuesday that it is examining a possible consolidation of its North American flat rolled operations and may idle steelmaking operations and most finishing operations at Granite City. US Steel said it routinely adjusts production to align with market fluctuations. The potential consolidation is a result of challenging global market conditions, including […]