Steel Mills

CSN to Sell U.S. Operations to SDI?

Written by Sandy Williams

A deal may be in the works for Brazilian steelmaker Cia Siderugica Nacional (CSN) to sell its U.S. operations to Steel Dynamics (SDI).

Brazilian media reported that the sale price would be at least $250 million, and probably more, for CSN’s cold rolling and galvanizing facility in Terre Haute, Ind. American Metal Market suggests the value of the operation could be considerably higher based on HRC prices, which have jumped by more than 34 percent since the Section 232 investigation was launched in April 2018.

Acquisition of the facility would benefit SDI’s cold-rolling and coating operations and provide a guaranteed outlet for HRC from the company’s Butler, Ind., and Columbus, Miss., mills. The Terre Haute facility has a galvanized rolling capacity of 350,000 metric tons per year (a small portion of the tons are sold as cold rolled).

Neither company is confirming that negotiations are under way.

Latest in Steel Mills