Severstal Spokesperson Does Not See Steel Demand Being Impacted by Sale
Steel Market Update spoke with a Severstal NA spokesperson this morning regarding the sale of the Wheeling-Pittsburgh, Warren and Sparrows Point steel mills along with other steelmaking and rolling assets. The company's position is the three flat rolled steel mills will not affect demand for hot rolled, cold rolled, galvanized, Galvalume and the tin mill markets.
Severstal informed SMU this morning of their intention to continue to run the plants as they have been for the past few months and the Renco Group, once the deal is closed, can then determine how they will run from there.
Below is the statement we received in a phone call this morning:
"We don't forsee this sale will impact the demand in the market place. As far as supply, until the transaction closes, W, W and SP will continue to operate in the same manner as they have previously. After the transaction closes, you will have to discuss the supply question with the new owner. Our Dearborn and Columbus plants, which will continue to be owned by Severstal North America, will not be affected by the sale.
The Columbus and Dearborn facilities, some of the most modern and advanced in North America, are positioned for long-term successful and profitable operations. Both Dearborn and Columbus have been able to operate at near capacity due to the demand from the markets and customers they serve."
Steel Market Update will be following the sales of the Severstal assets to the Renco Group as well as the new RG Steel once the deal is officially closed. You can follow developments by reading our SMU newsletter which will be published next on Thursday evening. You can register for a free trial below or an annual membership which costs $895 (US) for one year for a single membership.