Steel Products
Gerdau Divests Another U.S. Mill
Written by Tim Triplett
February 1, 2018
Gerdau SA is divesting its Beaumont, Texas, wire rod mill and two downstream operations, Beaumont Wire Products and Carrollton Wire Products, to reduce its footprint in the U.S. long products market. Optimus Steel LLC will acquire the facilities for $92.5 million in a deal to close by the end of the year.
The sale is the latest in a series of divestments worth more $1 billion. “The strategy in North America, a key market for us, is to improve our profitability, focus on more value-added products and better serve our customers,” said Gerdau CEO Gustavo Werneck. “We remain committed to strengthening our position in the U.S. in the next years and we see a great growth potential in the markets that Gerdau will continue to operate.”
Earlier in January, Gerdau agreed to sell four rebar mills and various downstream facilities to Commercial Metals Company for $600 million.
Earlier this week, Gerdau announced plans to begin producing 240-mm square blooms at its special bar quality mill in Monroe, Mich. The larger section size will result in a greater reduction ratio, improved surface quality and cleaner steel with fewer inclusions, the company said.
{loadposition reserved_message}
Tim Triplett
Read more from Tim TriplettLatest in Steel Products
Final Thoughts
The difference: The spat with Turkey was a big deal for steel. This time, the 50% reciprocal tariff for Brazil – if it goes into effect as threatened on Aug.1 – hits everything from coffee and to pig iron. It seems almost custom-built to inflict as much pain as possible on Brazil.
CRU: US rebar and wire rod prices rise alongside S232 increase
CRU Senior Steel Analyst Alexandra Anderson discusses current market and pricing dynamics for long steel products in the US.
CRU: Excessive global supply could hit rebar mill investments in US
Following the onset of the war in Ukraine in March 2022, concerns about import availability and expectations of rising demand from President Biden’s Infrastructure Bill pushed US rebar prices to record highs. In response, a flurry of new mills and capacity expansions were announced to meet the rise in demand from growth in the construction […]
Steel buyer spirits tempered by soft spot market conditions
Steel sheet buyers report feeling bogged down by the ongoing stresses of stagnant demand, news fatigue, tariff negotiations or implementation timelines, and persistent macroeconomic uncertainty.
CRU: US stainless prices to rise on expanded S232 tariffs
Stainless prices in the US market will rise, following price increases by major US producers. Our base case scenario incorporates higher US prices in the near term, despite the initial negative reaction by the market. US stainless prices will go up in 2025 H2 and will stay elevated in 2026 as tariffs on stainless […]