Analysis
Final Thoughts
Written by John Packard
November 3, 2014
We didn’t get the transcript of the AK Steel earnings conference call until this evening. A little late to do a full blown article. However, there were a few items that I wanted to point out to our readers. AK Steel reported that approximately 50 percent of their business is related to automotive. They reported automotive business is up about 6 or 7 percent while their automotive business (not counting Dearborn) was up 12 percent. AK reported that they are gaining automotive market share.
AK’s automotive shipments were the highest since the first quarter 2006.
They reported that the Ashland blast furnace hearth reline began on October 23rd and would last approximately 28 days (approximately the 20th of November). This should solve AK’s blast furnace issues as the furnace at Dearborn was rebuilt in 2007 and the Middletown blast furnace was relined in 2009. All three furnaces should be running full bore (my words not theirs) by mid-December 2014.
AK would not give guidance as to how many tons of steel was lost out of Dearborn when the Ford F-150 went to aluminum (one of the F-150 plants is right next to the Dearborn mill).
A reminder that our next Steel 101 workshop will be held in Mount Pleasant, South Carolina (right outside of Charleston) on January 20 & 21, 2015. You can find more details about our program and the tour of Nucor Berkeley (which we have been told will be exceptional) on our website. Registration is open and we have plenty of room. If you have any questions please contact me in my office: 800-432-3475.
I am in the office all week this week. I will be in New York City on Monday through Wednesday next week as I am speaking at the Cowen & Company conference on Wednesday morning. On Thursday and Friday I will be in Savannah, Georgia for the AWMI annual conference.
As always we want to thank you for your business which is truly appreciated by all of us here at Steel Market Update.
Tell your friends and steel contacts about us…
John Packard, Publisher
John Packard
Read more from John PackardLatest in Analysis
SMU Survey: Mills less negotiable on spot prices
Most steel buyers responding to our market survey this week reported that domestic mills are considerably less willing to talk price on sheet and plate products than they were in recent weeks.
SMU Survey: Lead times tick higher
Steel mill lead times marginally extended for both sheet and plate products this week, according to responses from SMU’s latest market survey.
North American auto assemblies slipped in September
North American auto assemblies declined in September, down 5.1% vs. August. And assemblies were also down 1% year on year.
Cliffs touts steel stamping solution to replace aluminum in automotive
Cliffs said it successfully completed a defect-free trial production of exposed steel parts using aluminum-forming equipment in collaboration with an unnamed OEM,
Final Thoughts
SMU’s hot-rolled coil price increased for a third consecutive week. And the gains were more pronounced this time following a price hike initiated on Friday by NLMK USA.