Steel Mills
ArcelorMittal Seeks Discount from Suppliers
Written by Tim Triplett
July 16, 2019
Perhaps taking a page from automakers’ playbook, ArcelorMittal USA reportedly sent a letter to its suppliers last week stating that it planned to implement a 10 percent price reduction on all existing purchase agreements, effective July 31.
S&P Global Platts reported that ArcelorMittal is calling on suppliers to help it cut costs as it works through a period of oversupply and weak demand for the steel industry.
ArcelorMittal did not respond to Steel Market Update’s request for comment this afternoon and may be in a quiet period ahead of its upcoming earnings report.
“The domestic U.S. steel industry has entered into a very difficult period, driven by oversupply, uncertainty in the markets and continuing inventory reductions at manufacturers and service centers,” stated the letter. “In addition to rapidly declining demand, prices have plummeted from 2018 levels. As one of our valued suppliers, we are asking for your help in dealing with this decline.”
As of SMU’s deadline today, it was unclear what types and how many suppliers received ArcelorMittal’s request/demand for a discount and what the consequences could be for noncompliance.
Tim Triplett
Read more from Tim TriplettLatest in Steel Mills
Nucor profits jump in Q3, but company cautions on Q4 outlook sequentially
Nucor’s profits more than doubled in the third quarter year over year, but the company expects Q4’25 to be lower sequentially.
SDI announces proprietary low-carbon EDGE products
Steel Dynamics has announced lower-embodied-carbon steel products BIOEDGE and EDGE, and expects “immediate interest” from several markets for some of the offerings.
Wheeling-Nippon Steel raises Galvalume coating extras
The steelmaker released updated extras to customers on Oct. 15, marking the second adjustment in just six weeks following their early September revision
Cliffs offloading some FPT assets, considering HBI plant sale as well
Lourenco Goncalves confirmed that Cleveland-Cliffs is actively selling off portions of its Ferrous Processing and Trading (FPT) assets. Its direct reduction plant in Toledo, Ohio, may also be up for grabs...
SSAB cites US strength but flags tariff-driven uncertainty
The Americas segment of Swedish steelmaker SSAB delivered a stable third quarter, but with weaker shipments and continuing cautious demand. Plate prices held, but tariffs, slowing end-user demand, and...