Steel Products
ThyssenKrupp Americas Sale Update
Written by John Packard
January 11, 2013
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 sources, there appear to be two groups vying for the portion of CSA not owned by Vale. The groups are reported to be CSN and a potential joint venture between Ternium/NSSMC (Nippon-Sumitomo). Our understanding is the relationship is stronger between Vale and Ternium than between Vale and CSN.
With ArcelorMittal able to pay down a portion of its debt, the mill becomes one of the potential leaders in the contest to acquire the TK USA assets. AM has a slab mill in Mexico and automotive expertise in North America. AM does not have a mill in the south.
Other companies actively involved are CSN (but they would need to buy CSA in order to supply slabs), US Steel (question about where the money comes from), Nucor (anti-trust an issue and do they align with another mill like AK Steel regarding automotive?), JFE, NSSMC.
A rumor is circulating that bids are due in February. What we have heard from TK conference calls is the company expects to make a decision by sometime during the second or early third quarter (calendar year) and close the sale by the end of the ThyssenKrupp fiscal year which we believe is the end of September.
John Packard
Read more from John PackardLatest in Steel Products
Active rig counts slipped in US, Canada
Drilling activity slowed in the US and Canada last week, according to the latest oil and gas rig count data released by Baker Hughes.
OCTG producers in Canada take aim at Mexico, US, others
Evraz NA and Welded Tube of Canada have lodged an unfair trade complaint against imports of OCTG, including those from USMCA trading partners Mexico and the US.
Final Thoughts
The difference: The spat with Turkey was a big deal for steel. This time, the 50% reciprocal tariff for Brazil – if it goes into effect as threatened on Aug.1 – hits everything from coffee and to pig iron. It seems almost custom-built to inflict as much pain as possible on Brazil.
CRU: US rebar and wire rod prices rise alongside S232 increase
CRU Senior Steel Analyst Alexandra Anderson discusses current market and pricing dynamics for long steel products in the US.
CRU: Excessive global supply could hit rebar mill investments in US
Following the onset of the war in Ukraine in March 2022, concerns about import availability and expectations of rising demand from President Biden’s Infrastructure Bill pushed US rebar prices to record highs. In response, a flurry of new mills and capacity expansions were announced to meet the rise in demand from growth in the construction […]