Steel Products
ArcelorMittal, Nippon Team Up to Rescue Essar Steel India
Written by Tim Triplett
March 2, 2018
ArcelorMittal (AM) and Nippon Steel & Sumitomo Metal Corp. (NSMMC) have teamed up to acquire and operate financially troubled Essar Steel India Ltd. (ESIL). The joint venture is still subject to regulatory approval.
ESIL operates one of India’s largest integrated mills with annual capacity of 10 million tons. It manufactures hot rolled, cold rolled and galvanized steel products in flat roll, plates and pipes, which are sold through its domestic sales channels. It also owns an iron ore mine in eastern India. The company is in bankruptcy proceedings.
ArcelorMittal and NSSMC have experience with other alliances in the United States, including the joint management of I/N Tek (cold-rolled steel products) and I/N Kote (coated steel products) in Indiana, as well as AM/NS Calvert (hot-rolled, cold-rolled, and coated steel products) in Alabama. Based on the success of their past joint ventures, ArcelorMittal’s track record of rebuilding companies and its substantial market knowledge of India, the partners believe they will be able to turn around ESIL and transform it into a competitive steel business.
The joint venture views India as one of the most promising steel markets in the world. NSSMC had been seeking opportunities to engage in integrated steel production in India to capitalize on the nation’s medium and long-term growth potential, and to reinforce its global supply network.
{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 […]