Steel Products Prices North America
Mesabi Metallics Defies Expulsion from Iron Range with New COO Hire
Written by Sandy Williams
May 18, 2021
Mesabi Metallics isn’t acting like a firm that is about to lose its position on the Iron Range. The company hired a new president and chief operating officer, selecting Larry Sutherland, former manager of U.S. Steel’s Minnesota Ore Operations, to join the executive team.
“I am excited to join Mesabi Metallics’ journey to complete the largest investment program in the history of Minnesota at the former Butler Taconite Mine, where I started my iron ore and steel career about 40 years ago,” said Sutherland.
Mesabi has formally notified the Minnesota Department of Natural Resources that it disputes the legality of mineral lease terminations by the agency. The company said in a statement Sunday evening, “Mesabi Metallics believes that it has met all material conditions necessary for the 2020 (master lease amendment) agreement to be fully effective.” The company said it now has binding and enforceable financing commitments of $850 million to complete the development of the mining and pellet operations in Nashwauk.
“For these reasons, Mesabi Metallics has formally notified the DNR that it disputes the existence of a proper legal basis for issuing any termination notices in respect of the state leases,” the company said in its release. “In the meantime, Mesabi Metallics remains fully committed to the project and is continuing to increase jobs on the site as it develops the mine for the benefit of Nashwauk and northern Minnesota.”
The DNR announced on May 7 that it would begin terminating the mineral leases held by Mesabi Metallics after the company failed to meet its May 1 extension to fulfill its leasing obligations. The announcement resulted in Cleveland-Cliffs and U.S. Steel both expressing interest in taking over the leases.
And so the saga continues…
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Products Prices North America
SMU Price Ranges: Sheet floor holds as market debates upside
Our average HR coil price increased $5/short ton from last week, marking a second consecutive week of modest gains. Market participants generally attributed the increase to...
Thin demand keeps plate prices hovering at lowest levels since February
Participants in the domestic plate market say spot prices appear to have hit the floor, and they continue to linger there. They say demand for steel remains thin, with plate products no exception.
SMU Price Ranges: HR crawls back to $800/ton
SMU’s HR price stands at $800/st on average, up $5/st from last week. The modest gain came as the low end of our range firmed, and despite the high end of our range declining slightly.
SMU successfully completes IOSCO review
SMU has successfully completed an external review of all our prices. The review has concluded that they algin with principles set by the International Organization of Securities Commissions (IOSCO).
Domestic plate prices could heat up despite so-so demand, market sources say
Some sources also speculated that plate could see further price increases thanks to modest but steady demand, lower imports, mill maintenance outages, and end markets less immediately affected by tariff-related disruptions.