AK Steel eked out a net income of $2.8 million in the third quarter, down from $66.8 million in Q2 and $67.2 million in Q3 2018. Included in net income was a $15.3 million mark-to-market loss from iron ore derivatives. Net sales of $1.5 billion fell 12 percent year-over-year and 9 percent from the second […]
Results for Ryerson Holding Corp., the Chicago-based processor and distributor of industrial metals, suffered from declines in steel prices and demand during the third quarter, but company executives are hopeful for improved margins in the coming quarters. Ryerson reported third-quarter revenues of $1.10 billion, a decrease of 11.6 percent compared to $1.25 billion in third-quarter […]
A memo from the Commerce Department Office of the Inspector General suggests that the Section 232 exclusion process may be favoring the companies that file objections to exclusion requests. The watchdog agency found evidence of unofficial communications that may be giving objectors undue influence in tariff decisions. The Bureau of Industry and Security is charged […]
Nucor Steel Arkansas opened its new cold mill complex at a ribbon-cutting ceremony on Friday, Oct. 25. The $230 million specialty cold mill will expand Nucor’s capability to produce high strength, high-strength low-alloy and motor lamination steel products for the automotive industry. “As a world leader in steel manufacturing technology, Nucor is particularly focused on […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: The presidential campaign heats up. The impeachment investigations continue. Polarization is in the air. Today, I note a trend that’s pertinent to all this—increasingly, pundits and commentators are discussing the futility of our current polarization. I recommend a […]
Mexican steel maker Altos Hornos de México, S.A.B. de C.V. (AHMSA) earnings in the third quarter of 2019 declined across the board due to unfavorable steel market conditions. AHMSA EBITDA plummeted 149.6 percent from 3Q 2018 for a loss of $40.4 million. EBITDA in the steel segment plunged 132.1 percent for a loss of $31 […]
U.S. Steel announced that it has completed $1.1 billion of financing activity that will support its previously announced growth projects. “The closing of these financing activities marks another successful step in the execution of our ‘best of both’ strategy,” said President and CEO David B. Burritt. “I am thankful for the strong support from our […]
JSW Steel divisions in Ohio and Texas both reported EBITDA losses in the second quarter of FY 2019-20. The Ohio mill increased production and revenue, which was offset by inventory writedowns and lower steel prices during the quarter. JSW Steel-Ohio produced 87,337 metric tons of hot rolled coil during the quarter, an increase from 80,037 […]
NLMK USA noted weaker demand in the pipe manufacturing and construction segments in its third-quarter earnings report. Prices dropped 13 percent from the second quarter and shipments declined 6 percent to 550,000 metric tons, resulting in a loss for the company. Revenue for the segment fell 18 percent from the second quarter to $391 million. […]
Reliance Steel & Aluminum Co. did better than anticipated in the third quarter, generating net sales of $2.69 billion. Shipments were higher than expected due to strength in Reliance’s largest segment, nonresidential construction, slipping just 2 percent compared to a typical seasonal decline of 4-6 percent. Demand for carbon structural and tubing products helped boost […]
SSAB Americas saw its third-quarter profits decrease to $54.5 million from $82.2 million in Q3 2018 due to lower plate steel prices. Sales were down 2 percent from the second quarter to $490 million and 6 percent from a year ago. Demand during the quarter was relatively stable with shipments of 521,000 metric tons, up […]
Commercial Metals Company is enjoying the rewards of its purchase of four rebar mills and 33 fabrication facilities from Gerdau. The acquisition added 2.5 million tons of rolling capacity and increased fabrication capacity by almost 50 percent. “The systems integration was flawless and got completed in less than four months, well ahead of schedule,” said […]
Nucor reported a decline in financial results as expected for the third quarter of 2019. Net earnings were $275 million, down from $386.4 million in Q2 and $676.7 million in Q3 2018. Consolidated net sales fell 7 percent from the previous quarter to $5.46 billion. Steel shipments to outside customers declined 7 percent from last […]
Steel industry trade associations from across the globe united in calling for increased efforts to tackle excess steel capacity. The group of 19 associations praised the OECD Steel Committee for highlighting the challenges facing the industry and urged the G20 to extend the mandate of the Global Forum on Steel Excess Capacity. The 87th Session […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: New developments cascaded on us in the past week. I will focus, as is my habit, on those related to international trade and commerce. Trade-related developments called into question a number of initiatives in Congress and the administration. Impeachment looked […]
Even after selling nearly half the company to U.S. Steel, Big River Steel intends to move ahead with its plans for a new EAF mill in Brownville, Texas, according to comments from CEO Dave Stickler to S&P Global Platts. Stickler said that a development company has been formed called Brownsville Investment Group LLC to handle […]
Steel Dynamics CEO Mark Millett enthusiastically spoke of the new steel mill planned for Sinton, Texas, during the company’s third-quarter earnings call. “We are excited about our Sinton, Texas, flat roll steel mill project, and the associated long-term value creation it will bring through geographic and value-added product diversification. This facility is designed to have […]
By CRU Analysts Chris Bandmann and Alexander Ordosch In response to events in Syria, U.S. President Donald Trump has announced that the U.S. tariffs on Turkish steel imports will be restored to 50 percent, after they had been revised down to 25 percent in May. What are the likely impacts of this decision? Turkish Exports […]
Commercial Metals Co. has shut down the melt shop at its steel rebar mill in Rancho Cucamonga, Calif., citing restrictive regulations and low-cost competition. “The burdensome regulatory environment and cost of doing business in California has put the Rancho Cucamonga melt shop at a severe cost disadvantage in the highly competitive rebar market,” said CMC […]
Tariffs on steel imports from Turkey will be doubled to 50 percent, declared President Trump, in punishment for Turkey’s military offensive on Kurds in northern Syria. The current tariffs imposed under Section 232 will be increased by executive action, said the White House. Trump’s decision last week to withdraw troops from Syria left the U.S.-allied […]
By CRU Senior Economist Yizhe Daniel Xie The two-day trade negotiations between the U.S. and China ended last Friday. China promised to purchase $40-50 billion worth of agricultural products from the U.S., liberalize its financial market, and take steps to address U.S. concerns on intellectual property and the RMB exchange rate. In exchange, the U.S. […]
NLMK USA’s sales fell 6.0 percent to 549,000 metric tons in the third quarter of 2019 compared to the second quarter, said NLMK Group in a trading update today. Declining volume was the result of decreased HRC sales due to lower demand from the tube and pipe sector. Shipments of hot-dipped galvanized (HDG) also decreased […]
U.S. Steel unrolled a new operating model on Tuesday that is expected to deliver $200 million of annual fixed cost savings by 2022. The new model includes a realignment of the company’s leadership team. The changes will be effective Jan. 1, 2020, and closely follow the recently announced investment in Big River Steel. “Our enhanced […]
U.S. Steel released preliminary third-quarter 2019 results, revising its earnings guidance upward to an adjusted net loss of $35-$45 million or $0.20-$0.25 per diluted share. Previous guidance estimated a net loss of around $0.35 share. U.S. Steel said stronger shipments and better than expected performance by its flat-rolled segment drove the adjusted outlook, as well […]
Four U.S. railroad companies have been accused of price-fixing by more than two dozen companies including steel producers AK Steel and North Star Bluescope. On Sept. 30, more than two dozen lawsuits were filed against BNSF, CSX, Norfolk Southern and Union Pacific claiming the rail carriers conspired to set rate-based fuel surcharges that increased rates […]
Liberty Steel USA will get a new $25 million electric arc furnace at its Georgetown, S.C., rolling mill next year. Georgetown’s aging EAF has an annual capacity of 500,000 metric tons, but actual production has fallen far short of that amount. “We have a very efficient rolling mill at Georgetown and we now want to […]
Worthington Industries has acquired Heidtman Steel Products’ pickling and slitting facility in Cleveland. As part of the sale, the Cleveland operation under Worthington will continue to service Heidtman customers through a toll processing agreement. “Heidtman’s Cleveland operation is a great addition to our steel business, further expanding our value-added steel processing capacity,” said Worthington Industries […]
JSW USA has filed a challenge to a tariff exclusion denial with the U.S. Court of International Trade. In the first tariff exclusion case to reach the USCIT, JSW claims that Commerce ignored evidence presented regarding the domestic availability of steel slab. The company is requesting a refund of the tariffs it was required to pay. […]
With U.S. Steel buying almost 50 percent of Big River Steel and holding an option on the remainder over the next four years, SMU thought it an appropriate time to review the list of announced changes being made by the mills in the United States, Canada and Mexico. We reviewed this listing with the four […]
By CRU Principal Analyst Josh Spoores and Analyst Ryan Smith U.S. Steel has announced a 49.9 percent stock acquisition with an option to acquire the remaining 51.1 percent within the next four years, in smaller rival U.S. flat products new entrant Big River Steel. In its announcement, U.S. Steel labelled this acquisition, alongside its investment […]