Lee Steel has sold all of the assets of its Wyoming, MI operations (Grand Rapids facility) and its working capital assets at the Romulus, MI facility to Union Partners I LLC, an affiliated group of service centers. The Romulus facility will be consolidated into the Wyoming facility and there will be no interruption in service […]
As expected, five U.S. steel mills banded together and filed an antidumping petition against cold rolled steel from: China, Russia, India, South Korea, Netherlands, Japan, United Kingdom and Brazil. Reaction from steel buyers about the scope of the cold rolled suit ranged from relatively muted to surprised. Those who had a muted response expected that […]
The Metal Service Center Institute (MSCI) will report June inventories and shipments on Friday of this week. The world is keenly interested in how much steel the distributors are holding on their floors and how June will compare not only to May’s totals but to June 2014 totals as well. The real test, however, will […]
“I have not heard anyone all that concerned about supply disruptions other than the industry media. It seems there is plenty of material to go around and anyone who took a position is hoping that there will be an interruption so that their inventory will become more profitable.” Ohio Valley Service Center Earlier today, SMU […]
Steel Market Update found the results of one of the group of questions about service center spot sales from this past week’s flat rolled steel survey quite interesting. There have been two price increase announcements by all of the domestic mills and a third laying there from US Steel and our results suggests – well, […]
The four year contract between USW local 1196 and Allegheny Technologies expired at 11:59 on June 30, 2015 but an agreement has been reached, for now, to keep the plant operational under terms of the previous contract. ATI and USW officials say there are still a number of significant issues to be resolved before a […]
PRO-TEC Coating Company, a 50/50 joint venture between United States Steel Corporation and Kobe Steel, Ltd., of Japan, announced today that its president, Bryan Vaughn, will retire effective June 1, 2015 after 34 years of service in the steel industry. Brent Rosebrook, currently vice president of finance and administration at PRO-TEC, has been named acting […]
According to the Metal Service Center Institute (MSCI), U.S. steel service centers shipped 3,465,900 tons of carbon steel (all products) at an average of 157,500 tons per day during the month of April 2015. Total carbon shipments were down 5.6 percent over the previous month and 9.0 percent lower than one year ago. The daily […]
For the first time in many months we have seen a break in spot market steel pricing coming out of the service centers. Manufacturing companies have been reporting to Steel Market Update via our flat rolled steel market questionnaire for a number of months that service center spot prices were falling. In the survey just […]
Ryerson Holding Company, a processor and distributor of metals, announced the appointment of Edward J. Lehner as President and Chief Executive Officer. Lehner will succeed Michael C. Arnold who will retire at the end of May. Lehner has served as executive vice president and chief financial officer for Ryerson since 2012. Prior to joining Ryerson, […]
According to the Metal Service Center Institute (MSCI,) U.S. steel service centers shipped 3,672,900 tons of carbon steel (all products) at an average of 167,000 tons per day during the month of March 2015. Total carbon shipments were up 10.1 percent over the previous month but 0.1 percent lower than one year ago. However, the […]
Twice per month Steel Market Update (SMU) conducts an analysis of the flat rolled steel market utilizing our proprietary questionnaire which is presented to approximately 600 companies for review. We receive well over 100 responses every time we canvass the market with the vast majority of respondents falling into either the manufacturing or service center/wholesaler […]
Lee Steel Corp, a privately owned steel service center in Novi, Michigan, filed for Chapter 11 bankruptcy protection on April 13, 2015. In a court filing the company cited “financial difficulties resulting from the present severe collapse in steel prices.” The company listed debt of approximately$10.8 million. The vast majority of the debt owed is […]
Randall Metals Corporation, a distributor of prime tin mill products in North America, announced the commissioning of a multi-million dollar, 50,000-pound capacity 72-inch Slitter line at its East Chicago Service Center. The line, designed with Athader, a global coil processing and technology leader, features the latest advancements in processing automation, operator control and display systems, […]
Ryerson Holding Company, a leading distributor and processor of metals, announced a net loss of $25.7 million for 2014. Revenues increased 4.7 percent last year to $3.6 billion, but $32.7 million in IPO-related expenses and costs associated with partial redemption of Senior Notes negatively impacted earnings. “We showed year-over-year improvement in our key metrics for […]
M&M Manufacturing, a portfolio company of TGF Management, has been acquired by MiTek Industries, Inc., a subsidiary of Berkshire Hathaway. The transaction, announced by Houlihan Lokey, closed on February 24, 2015. M&M Manufacturing, headquartered in Fort Worth, Texas, is the leading diversified manufacturer of sheet metal building products in the Southwest, primarily servicing the air […]
SMU had the opportunity to attend the Association of Steel Distributors (ASD) meeting in Pittsburgh on March 5. The meeting was held at the delightfully decorated Hotel Monaco in downtown Pittsburgh. ASD president Brian Robbins welcomed the younger than usual attendees to the ASD meeting and invited them to become part of the Future Leaders […]
AM Castle, a global distributor of specialty metal and plastic products, reported a consolidated net loss of $39 million for Q4 and a loss of $134.7 million for the full year 2014. Results for Q4 were negatively impacted by $8.2 million of provisions for inventory reserves due to restructuring consolidation and $2.9 million of other […]
It is no secret, the U.S. flat rolled steel service centers are over-inventoried and mill spot prices are falling. In order to take advantage of the lower pricing, distributors must move off any excess inventories which Steel Market Update has calculated to be approximately 1.145 million tons as of the end of January. (Note: the […]
“It’s not 2008 or 2009.” We heard this from trading companies, steel service centers and mills during the Port of Tampa Steel Conference this past week. This week we are hearing similar comments as we make our rounds talking to those active in the industry. Prices have been collapsing but there does not appear to […]
Flat rolled steel buyers are resigned to a steel price spot market which takes benchmark hot rolled prices below the $500 per ton ($25.00/cwt) level. One of the large hot rolled service centers this morning told Steel Market Update that they were having a difficult time keeping up with the pace of the falling numbers. […]
The Material Works, Ltd, (TMW) announced it has dropped plans to open a flat rolled toll processing center adjacent to Big River Steel in Arkansas. The company will instead expand the capacity of its present facility in Red Bud, Illinois, adding a new Eco Pickled Service (EPS) processing and technology center to process advanced high […]
As we listen to the domestic steel mills earnings conference calls, one of the items we focus on is their viewpoint regarding service center inventories. One year ago the domestic mills were touting the lack of inventory as being one of the drivers of orders which was keeping flat rolled steel prices high. That tune […]
Margins are being compressed at the secondary steel services centers according to SMU secondary market sources. However, unlike prime flat rolled steel where we find prices have been in steady decline for a few months, secondary or non-prime flat rolled steel pricing did not begin to erode until right after the beginning of the New […]
In each and every flat rolled steel market survey Steel Market Update conducts, we ask both the flat rolled steel service centers and their manufacturing customers to comment on service center spot pricing. SMU believes spot prices being touted by the steel distributors is a microcosm of the health of the greater steel industry. We […]
Spartanburg, South Carolina, January 2, 2015. – Logic Ventures, LLC (“Logic Ventures”) is pleased to announce the acquisition of 100% of the shares of All Metals Service & Warehousing and All Metals Transportation and Logistics (“All Metals”), an independent, South-East based, flat rolled steel and aluminum toll-processor and end-to-end logistics provider. The acquisition comes as […]
Austrian international technology company ANDRITZ Group has acquired Herr-Voss Stamco in Callery, Pennsylvania for an undisclosed purchase price. The acquisition will enlarge ANDRITZ’s service and product offerings in the North American metals sector. Herr-Voss Stamco also serves a large customer base in the North American automotive, service center and oil/gas industries. Herr-Voss Stamco is supplier […]
Jodi Parnel, Vice President of Supply Chain for O’Neal Steel spoke to the AWMI conference attendees on Friday of this past week. During her presentation Ms. Parnel explained how purchasing has changed since she began in the industry in 1998. “Service centers,” she explained, “no longer fill the gaps in a weak supply chain.” Steel […]
A.M. Castle & Co. reported net sales of $245.5 million for third quarter for a net loss of $7.3 million. Metals segment sales totaled $210.7 million, down 1.6 percent from the previous quarter and 4.2 percent lower year over year. Pricing dropped 2.5 percent and sales volumes declined 1.4 percent compared to Q3 2013. “While […]
Schnitzer Steel Industries, Inc. expects significantly improved results for fourth quarter FY 2014, ending August 31, 2014. The company’s steel manufacturing business benefited from growing West Coast construction demand and productivity initiatives that resulted in operating income in the range of $13 to $14 per ton, the highest quarterly profit since FY 2008. Metals recycling […]