Steel Products Prices North America

Quebec Zinc Plant on Strike
Written by Sandy Williams
February 20, 2017
Employees at a zinc processing facility in Quebec have gone on strike raising concerns for metal producers that use the alloy in galvanized steel.
CEZinc, in Salaberry-de-Valleyfield, Quebec is co-owned by Glencore and Noranda Income fund. Employees say the company demanded major pension concessions, despite an over-funded pension plan, and has rebuffed union suggestions for cost-cutting alternatives.
“We’ve been more than reasonable throughout the negotiations, but the employer isn’t interested in our proposals. They want a blank cheque for concessions,” said United Steelworkers Local 6486 President Manon Castonguay in a press release.
“On one hand Noranda Income Fund is making demands for serious concessions and on the other hand it refuses to put its cards on the table regarding the contracts it has negotiated with Glencore,” Castonguay said.
“Our plant is competitive, it has highly qualified workers and we’ve set new production records. We’re not going to accept concessions just to please a greedy employer.”
“This employer, Noranda Income Fund, has deliberately pushed us toward a labour dispute,” said Steelworkers staff representative Luc Julien, adding that the company has not provided any evidence of problems or financial trouble at the plant. The union and management have been engaged in labor negotations since November 2016.
Noranda responded that it will be operating under market terms beginning May 3, 2017.
“We have been preparing for market terms for some time, given the expected adverse impact on our financial results,” said Eva Carissimi, president and CEO of Canadian Electrolytic Zinc Limited. “Operating in a market term environment and in a tight zinc concentrate market makes it imperative that we explore all scenarios to lower expenses and improve plant safety and efficiency.”
The company said it remains committed to a new collective agreement that will allow operations on a profitable basis. Steps are being taken to resume partial production while the strike in in effect.
The CEZinc refinery is the largest zinc processing facility in eastern North America. Noranda is the refinery’s principal owner, while Glencore manages operations and owns a 25 per cent stake. CEZinc has annual production capacity of 265,00 tonnes, representing 17 percent of demand in Canada and the U.S. Half of the zinc ore that is processed is sourced from Quebec and Canada and the other half is imported. Seventy percent of CEZinc production is exported. The company also produces 400,000 tonnes of sulfuric acid annually.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Products Prices North America

Thin demand keeps plate prices hovering at lowest levels since February
Participants in the domestic plate market say spot prices appear to have hit the floor, and they continue to linger there. They say demand for steel remains thin, with plate products no exception.

SMU Price Ranges: HR crawls back to $800/ton
SMU’s HR price stands at $800/st on average, up $5/st from last week. The modest gain came as the low end of our range firmed, and despite the high end of our range declining slightly.

SMU successfully completes IOSCO review
SMU has successfully completed an external review of all our prices. The review has concluded that they algin with principles set by the International Organization of Securities Commissions (IOSCO).

Domestic plate prices could heat up despite so-so demand, market sources say
Some sources also speculated that plate could see further price increases thanks to modest but steady demand, lower imports, mill maintenance outages, and end markets less immediately affected by tariff-related disruptions.

SMU Price Ranges: HR holds, galv slips amid competing market narratives
SMU’s sheet and plate prices see-sawed this week as hot-rolled (HR) coil prices held their ground while prices for galvanized product slipped.