Final Thoughts

Final Thoughts

Written by John Packard


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Word from the street (rumor mill) has three companies bidding for the Gallatin Steel mill: CSN out of Brazil, Nucor and Steel Dynamics.

This could be the last chance for CSN to expand their presence in the United States. With consolidation of the Severstal and ThyssenKrupp Steel USA assets combined with the closure of RG Steel and the questions arising from financial issues at Essar Steel Algoma, CSN has to seriously consider their substrate issues.

Steel Dynamics may have interest because the purchase of Severstal Columbus does not address the need for a internal substrate supplier for The Techs.

One of the analysts told us during a conversation that the investor community was disappointed that Nucor didn’t make a charge after any of the Severstal assets. They expect Nucor to make a move and expand. Most of Nucor’s flat rolled steel capacity is located in the south so a Kentucky based mill may assist in their move to expand into more northern business. Besides, a Nucor joint venture service center, Steel Technologies does the pickling for Gallatin. That business could be at risk is the mill is purchase by another mill. Nucor also has an intact cold mill that they purchased from Sparrows Point when RG Steel was dismantled.

Another mill to watch is US Steel. Mario Longhi made it quite clear that the mill had to embrace EAF steelmaking in order to cut costs and survive.

Our understanding is bids for Gallatin are due by the middle of this month.

Stay tuned.

As always your business is truly appreciated by all of us here at Steel Market Update.

John Packard, Publisher

The timing is just right…Come join us in Atlanta on September 3 & 4.

Latest in Final Thoughts

Final thoughts

Last week was a newsy one for the US sheet market. Nucor’s announcement that it would publish a weekly HR spot price was the talk of the town – whether that was in chatter among colleagues, at the Boy Scouts of America Metals Industry dinner, or in SMU’s latest market survey. Some think that it could Nucor's spot HR price could bring stability to notoriously volatile US sheet prices, according to SMU's latest steel market survey. Others think it’s too early to gauge its impact. And still others said they were leery of any attempt by producers to control prices.