Steel Mills
ThyssenKrupp Alabama Sale is Close to Conclusion
Written by John Packard
November 19, 2013
ThyssenKrupp AG put out a press release late this afternoon postponing their annual financial statements which were originally scheduled for this Thursday, November 21st. The reason being provided is the company is involved in “..exclusive negotiations on the potential sale of the US steel plant in Calvert/Alabama (ThyssenKrupp Steel USA). The talks also include a long term slab supply contract for ThyssenKrupp CSA, a solution that would secure the value of the Brazilian steel mill. Whether the transaction will be brought to a successful conclusion is still open at present….”
The company advised the establishment of their 2012/2013 fiscal year financial statements has been postponed to December 2, 2013.
SMU Note: The rumor mill has been rampant regarding the potential winning suitor for the ThyssenKrupp Steel USA facility for a number of months. To the best of our knowledge there are two main bidding groups: CSN out of Brazil and ArcelorMittal/Nippon Steel.
What makes the announcement interesting – and I am sure will peak a flood of speculation – is the comments regarding the “long term slab supply contract for ThyssenKrupp CSA.” SMU is aware that CSN was conducting negotiations on a long term slab supply agreement over the past few months. Those negotiations appeared to have failed to come to a resolution based on our sources.
We do not have any vantage point to gauge the negotiations between ArcelorMittal and ThyssenKrupp AG although we believe discussions continue between the two parties.
We do not know what mill will ultimately control the TK USA facility and we are quite certain that there are many anxious people sitting in their offices and on the plant floor in Calvert, Alabama just waiting for the deal to get done.
John Packard
Read more from John PackardLatest in Steel Mills
Mexico’s TYASA breaks ground on SBQ rolling mill
Mexican steelmaker Talleres y Aceros (TYASA) broke ground this month on the construction of a new special bar quality (SBQ) rolling mill in the state of Veracruz.
Goncalves sees more US trade actions ahead, says Nippon deal for USS has ‘zero chance’
Cleveland-Cliffs’ Lourenco Goncalves thinks trade measures announced by the US government on Tuesday against China were just the opening salvo in a series of trade actions. Case in point: The Biden administration targeted China’s “unfair” trade policies with additional tariffs on an array of Chinese-made goods - including steel, aluminum, and EVs.
Nucor holds weekly HRC price steady after last week’s cut
Nucor chose to hold its consumer spot price (CSP) for hot-rolled (HR) coil steady this week after stunning the market last week with a significant price decline. The steelmaker said in a letter to customers on Monday morning that its $760-per-short-ton (st) CSP base price for HR coil is effective immediately. The price is unchanged from the CSP announced on May 6 but down $65/st from $825/st April 29.
Nucor’s Jellison set to retire, Spicer tapped for EVP role
Nucor said EVP Douglas J. Jellison plans to retire on June 8 after more than 33 years with the company. Randy J. Spicer will be promoted to EVP effective May 12.
Republican Senators demand Biden block USS sale to Nippon
Three vocal Republican senators are demanding that President Joe Biden block the sale of U.S. Steel to Japan’s Nippon Steel.