Steel Mills

Stelco Nears End of Restructuring
Written by Sandy Williams
May 9, 2017
Stelco, the former US Steel Canada, is getting nearer to emerging from CCAA protection. A “sanction hearing” is scheduled for June 9 during which the court will decide whether Bedrock Industries will be the new owner.
Bedrock has the support of most of the stakeholders but is still facing resistance from the local unions who say there are still details to work out before a collective agreement can be ratified. Justice Wilton-Siegal wants the contracts to be ratified before he will agree to finalize the sale.
Gary Howe, president of Local 1005, told the Hamilton Spectator, “There are a lot of things to work out. I think the whole thing needs more time.”
Although Local 1005 has only 520 members it represents the concerns of more than 15,000 retirees and is expected to be the most difficult with which to reach an agreement. Pension benefits for the local are one the most contentious of the issues to be ironed out. The proposed contract cuts healthcare benefits (OEPBs) for retirees by 30 percent. Local 8782, headed by President Bill Ferguson, represents Lake Erie Works.
Stelco turned in decent operating results for first quarter which is a good sign for the emerging company. Shipments in first quarter 2017 were 499,918 tons, up from 497,671 in Q1 2016. Revenue for the quarter totaled CAD 380.4 million from CAD 272 million in first quarter 2016 for first quarter EBITDA of CAD 62.8 million. Stelco ended the quarter with CAD 236.8 million in cash.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills

Nucor eyes long-term gains amid strong demand and trade enforcement
Resilient demand across its steel product lines, combined with the continued ramp-up of key expansion projects, drove Nucor’s improved financial results and record-setting performance in the second quarter. That’s according to company executives speaking on an earnings conference call on Tuesday.

Three independent, new directors join USS board
U.S. Steel (USS) appointed three new, independent US members to its board of directors, the company announced.

Nucor reports improved earnings, sales, and operating rates
Nucor reported a sharp sequential rebound in the second quarter, buoyed by improved pricing and strong shipments. But the steelmaker is bracing for a modest slowdown in the months ahead.

Cliffs confirms Cleveland furnace restart, Dearborn furnace idling
Cleveland-Cliffs is idling blast furnace, BOF shop, and continuous caster functions at its Dearborn plant, but downstream operations will remain unaffected, the company confirmed. Cliffs said its pickling line tandeom cold mill (PLTCM) and its extra wide automotive-grade galvanizing line for exposed parts will continue operations at the Dearborn, Michigan-based facility.

Nucor spot HR list price unchanged at $900/ton
Nucor maintained its weekly list price for hot-rolled (HR) coil flat this week, following a price cut the previous week.