Steel Mills

ArcelorMittal to Acquire CSP in $2.2 Billion Deal
Written by David Schollaert
July 30, 2022
ArcelorMittal SA has agreed to buy Brazilian steelmaker Companhia Siderúrgica do Pecém (CSP) from Brazilian iron ore miner Vale SA and shareholders.
The deal is worth $2.2 billion and is expected to be completed late this year.
CSP is a joint venture between Vale, which holds a 50% stake in the company, and South Korean steelmakers Dongkuk and Posco, which hold 30% and 20% stakes, respectively.
The Luxembourg-based company said the move would expand its position in the high-growth Brazilian steel industry and capitalize on a clean electricity and green hydrogen hub in Pecém.
“CSP … further enhances our position in Brazil and adds immediate value to ArcelorMittal,” CEO Aditya Mittal said in comments released with the company’s second-quarter earnings results last week. “There is significant potential to decarbonize the asset given the state of Ceará’s ambition to develop a low-cost green hydrogen hub and the huge potential the region holds for solar and wind power generation. CSP produces high-quality slabs and is cost competitive, ensuring its products are competitive domestically and for export.”
CSP began producing steel slabs in 2016 and has a capacity of 3 million tons of slabs per year, according to the company’s website. It makes a range of slabs including American Petroleum Institute (API) grade material used in the energy sector and peritectic steels necessary for certain defense and automotive applications.
Brazil is the largest slab supplier to the United States despite being subject to a Section 232 quota. The US imported 2.89 metric tons from Brazil in 2022, up 19.4% from 2.42 million in 2021, according to Commerce Department figures.
Slab imports are of significant value to the US market. They are the raw material needed to make flat-rolled steel for US re-rollers such as California Steel Industries (CSI), Evraz North America, NLMK USA’s Pennsylvania operations, and AM/NS Calvert, a joint venture between ArcelorMittal and Japan’s Nippon Steel.
By David Schollaert, David@SteelMarketUpdate.com

David Schollaert
Read more from David SchollaertLatest in Steel Mills

August US mill shipments slip but still higher than last year
The American Iron and Steel Institute reported a decline in the monthly shipments of US mills from July to August.

TransPod, Algoma, Supreme Steel linkup anchors Canadian steel in high-speed transit build
The three Canadian companies have announced a strategic partnership to support the development of an ultra-high-speed transit line from Edmonton to Calgary.

Metallus, USW agree to tentative four-year labor deal
Metallus and the United Steelworkers (USW) have agreed to a tentative four-year labor contract.

ArcelorMittal Dofasco resumes cokemaking after emergency maintenance
The Canadian steelmaker reported on Sept. 30 that “urgent maintenance” was needed in its coke plant off-gas systems. The work required coke oven gas from the No. 2 coke plant to be flared for most of that week.

AISI: Raw steel production ticks back down
US raw steel output declined last week after increasing the week prior, according to the latest data from the American Iron and Steel Institute (AISI). Output has see-sawed from week to week since mid-August. Still, it has remained historically strong over the past four months and has held near multi-year highs since June. Domestic mills […]