Steel Mills
Bank of America Brazil Analyst Believes TK Deal Near
Written by Sandy Williams
October 13, 2013
SMU learned in a recent conference call held by Bank of America Merrill Lynch analysts that CSN is no longer interested in the ThyssenKrupp Brazil assets. Thiago Lofiego, senior Latin American Mining & Steel analyst at BofAML said CSN now appears to be interested in purchasing only the TK Alabama assets for a price in the range of $1-$1.5 billion dollars. Rumors have been indicating an announcement of a deal may be forthcoming this week or next said Lofiego.
According to the analyst, the Brazilian slab plant is currently operating on essentially a zero margin due to the high cost of making slab in Brazil ($500-$550 per metric ton). The mill has been plagued with operating problems that even if fixed would still leave the operation unprofitable. A buyer would need to add a hot rolling mill in Brazil or shut down, said Lofiego, because the plant is making zero or negative EBITDA.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
U.S. Steel sues Algoma over iron pellet shipments
U.S. Steel is suing Algoma over the Canadian flat-rolled producer's rejection of iron pellet shipments, arguing it has breached its contract.
August US mill shipments slip but still higher than last year
The American Iron and Steel Institute reported a decline in the monthly shipments of US mills from July to August.
TransPod, Algoma, Supreme Steel linkup anchors Canadian steel in high-speed transit build
The three Canadian companies have announced a strategic partnership to support the development of an ultra-high-speed transit line from Edmonton to Calgary.
Metallus, USW agree to tentative four-year labor deal
Metallus and the United Steelworkers (USW) have agreed to a tentative four-year labor contract.
ArcelorMittal Dofasco resumes cokemaking after emergency maintenance
The Canadian steelmaker reported on Sept. 30 that “urgent maintenance” was needed in its coke plant off-gas systems. The work required coke oven gas from the No. 2 coke plant to be flared for most of that week.