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
AISI: Raw steel production continues to slide
US raw steel mill production has slipped for the fourth consecutive week, according to the latest figures released from the American Iron and Steel Institute (AISI).
Nucor maintains HR list price of $730/ton for a third week
Nucor’s consumer spot price (CSP) for hot-rolled (HR) coil is unchanged this week at $730 per short ton (st).
Nucor shuttering Chicago tubular facility
Nucor is closing its Nucor Tubular Products Chicago facility and will be laying off 47 workers.
Algoma foresees narrow profit (or loss) in fiscal Q2’25
Canadian flat-rolled steelmaker Algoma predicts that it will be roughly breakeven on an adjusted EBITDA basis in the second quarter of its fiscal year. The Sault Ste. Marie, Ontario-based company expects adjusted EBIDTA in a range from a gain of $5 million CAD ($3.7 million USD) to a loss of $5 million CAD in fiscal Q2'25.
Arbitration board sides with USS over USW on Nippon deal
A board of arbitration has ruled in favor of U.S Steel vs. the United Steelworkers (USW) union in a dispute regarding Nippon Steel’s more than $14-billion proposed deal for the Pittsburgh-based steelmaker.