Thirteen local unions representing United Steelworkers at ArcelorMittal voted unanimously to authorize the USW negotating committee to call a strike. The USW says the latest contract proposal is not fair to employees and contains too many concessionary demands that would wipe out any pay increases. “ArcelorMittal is trying to convince us that we should ignore […]
A molten steel spill at the AK Steel Ford River Rouge complex required containment by firefighters early Monday morning. “At about 2 a.m. today (Sept. 17), Dearborn Works experienced a small spill of iron from a rail car. There were no injuries and no impact to customers,” said a spokesperson for AK Steel. Dearborn Deputy […]
Hurricane Florence is expected to take a toll on shipments from the Carolinas and Virginia. In the aftermath of Hurricane Harvey, trucks were in short supply for regular freight shipments as many were diverted to the storm-affected areas to help with recovery efforts. If Florence causes similar damage, that scenario could be repeated. Truckload spot […]
Nucor is expecting earnings to improve from second to third quarter at its sheet and plate mills, despite weather-related outages at some locations. Lower sequential earnings are forecast at its steel products segment. Decreased performance at Nucor’s scrap brokerage and processing operations and at the Louisiana DRI facility will result in lower earnings for the […]
Charlotte-based Nucor Corp. will suspend operations at its sheet mill in Berkeley, S.C., and its plate mill in Hertford, N.C., in anticipation of Hurricane Florence. Operations began shutting down on Wednesday and will restart after the storm passes, said Nucor spokesperson Katherine Miller. “At Nucor, safety is our top priority…. We are closely monitoring the […]
A second contract proposal by U.S. Steel to United Steelworkers has been met with disdain by the USW bargaining committee. U.S. Steel’s Sept. 12 proposal calls for a six-year term with wage increases of 4 percent the first year followed by 2 percent annually the following five years. Workers would receive a $4,000 ratification bonus […]
AK Steel co-hosted Steel Market Update’s first Steel 201: Introduction to Advanced High Strength & Other New Steels workshop this week at the $36 million AK Research and Innovation Center opened last year in Middletown, Ohio. The beautiful 135,000-square-foot facility made AK Steel’s commitment to R&D readily apparent to the 40+ students and staff assembled […]
The Trump administration’s negotiating objectives for NAFTA were challenged by Democrats on the House Ways and Means Committee this week. A Sept. 10 letter to U.S. Trade Representative Robert Lighthizer questioned whether the bilateral deal with Mexico was “in the spirit of the Trade Promotion Authority.” The members said they were surprised by the formal […]
The Commerce Department published new regulations taking effect on Tuesday that make significant changes in product exclusion requests for the steel and aluminum tariffs. According to reports, the notice will be published in the Federal Register on Tuesday, Sept. 11. The revised rules allow for comments rebutting industry objections (with 7 days after the 30-day […]
Nucor Corp. announced plans to invest $650 million to expand the production capability at Nucor Steel Gallatin. The upgrade would increase the Kentucky flat rolled sheet mill’s capability to 3.0 million tons annually from its current level of 1.6 million tons. In addition, the maximum coil width would be increased to 73 inches. The facility […]
ArcelorMittal workers are contemplating a strike authorization after labor negotiations stalled last week. The USW complains that the company’s proposal does not measure up to the financial success that union workers helped ArcelorMittal achieve. “Rather than engaging in good faith negotiations for a fair contract, management continues to bring the same 2015 backward thinking proposals […]
A strike authorization vote by U.S. Steel union members has received overwhelming support at plants across the Midwest. “Every plant in Northwest Indiana that has voted has been unanimous. Not one member has said no (to a possible strike),” said Rick Bucher, assistant director of USW District 7 in a comment to the Chicago Tribune. […]
Section 232 tariffs on steel and aluminum products from Canada and Mexico are back in the spotlight now that NAFTA talks are, hopefully, nearing an end. Steel associations from Canada and Mexico are calling for the tariffs to be terminated while the negotiations are under way. Mexican association Canacero has stated that a NAFTA deal […]
Canada is back in the NAFTA negotiations, but dispute settlement and cultural exemptions continue to be sticking points for a new agreement. Prime Minister Justin Trudeau has stressed that Canada will hold firm on requiring a dispute resolution mechanism like Chapter 19. “As I’ve said, we will not sign a deal that is bad for […]
ArcelorMittal has moved closer to finalizing its acquisition of Italian mill Ilva Steel. The company announced on Thursday that it has reached a provisional labor agreement with Ilva’s trade union. The agreement includes a commitment to employ 10,700 workers through 2020 based on their existing employment contract, as well as another 2,000 that remain employed […]
The American Trucking Association forecasts that total freight volumes will increase by 4.2 percent to nearly 16 billion tons in 2018. Over the next decade, freight volumes will jump by 35.6 percent to 21.7 billion tons. The newly released ATA Freight Forecast 2018 to 2029 also anticipates that truck volumes will grow 2.3 percent per […]
Collective bargaining agreements for USW members at U.S. Steel and ArcelorMittal expired on Sept. 1. Workers at both companies will continue under an extended contract agreement while negotiations proceed. ArcelorMittal posted the following statement on their website: “ArcelorMittal appreciates the United Steelworkers’ willingness to continue working under current contracts while negotiations proceed. We believe this […]
Austrian steelmaker Voestalpine will move part of U.S. automotive parts production to Mexico to avoid steel import tariffs. Voestalpine has 48 U.S. sites that primarily use domestic steel but about one third of company revenue relies on plate and specialty imported steels that are not produced in the United States. U.S. production accounts for one […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: I am just back from Atlanta, where I attended the SMU Steel Summit. I was pleased to be able to speak to many steel industry folks concerned about the steel tariffs, the China tariffs and […]
Those hoping for the inside scoop on Nucor’s plans to purchase Big River Steel were left to speculate following comments by Nucor Chairman and CEO John Ferriola during Steel Market Update’s steel summit this week in Atlanta. Ferriola neither confirmed nor denied Nucor’s rumored interest in BRS, but his posture suggested it’s a possibility. Nucor […]
Tariffs are harming, and sometimes causing devastating effects, for small manufacturing businesses, said speakers at the 2018 SMU Steel Summit held in Atlanta this week. An informal survey of 486 people at the summit showed almost half (49 percent versus 43 percent) of those polled felt the Section 232 tariffs were having a negative impact […]
United Steelworkers have not reached a collective bargaining agreement with ArcelorMittal or U.S. Steel with just one day remaining before the current contracts expire. As union officials consider their options, including a possible strike, marches and rallies were planned for Thursday, Aug. 30, at ArcelorMittal and U.S. Steel locations to show union solidarity. “Steelworkers have made […]
The Nucor Sheet Mill Group and USS-POSCO Industries have notified customers of changes in their coating extras as a result of lower zinc prices. The announcements follow on a similar letter to customers from California Steel Industries (CSI) last week. Nucor’s Aug. 30 letter stated: “Consistent with our practice to monitor the cost of zinc, […]
The U.S and Mexico announced on Monday a bilateral trade deal that could replace NAFTA if Canada does not agree to terms by the end of the week. President Trump said that he was ready to terminate NAFTA and replace it with the United States-Mexico Trade Agreement, calling the new name “elegant.” Mexico President Enrique […]
Mexican steel association Canacero said it has been called to Washington to discuss replacing the 25 percent tariff on steel imports to the U.S. with quotas. A spokesperson for Canacero President Maximo Vedoya verified the request by Washington in a statement to Reuters. “Talks are taking place now and the most important thing for the […]
The United States and Mexico have agreed on changes to the rule of origin for NAFTA automobiles during bilateral discussions. The percentage of North American content for NAFTA autos will be increased from 62.5 percent to 75 percent. In addition, 70 percent of steel, aluminum and glass used in production of autos must be sourced […]
United Steelworkers called the latest contract proposal from U.S. Steel an “insult.” The proposed seven-year labor agreement ties any future wage increases or economic adjustments to profit-sharing and bonus schemes, said the USW. “After our many sacrifices and diligent work to keep this company in operation through tough times, and the misery our members have […]
California Steel Industries was the first mill to announce a change to its coating extras this week. Steel Market Update’s comparison of the new rates with the previous rates that took effect one year ago, on Oct. 1, 2017, shows an average reduction of 14.1 percent, with no change in the width/thickness extras. Buyers of […]
Distributors of secondary steel report generally positive market conditions, though the nonprime sector has experienced a bit of a lull in recent weeks. Secondary steel is nonprime or excess material that did not meet the specifications for its original intended use, but is acceptable to other buyers for other applications. The spot market on nonprime […]
The United Steelworkers (USW) has rejected a proposal by U.S. Steel that would provide variable bonuses instead of pay raises. “We made it clear to the company that wage increases must be part of our new agreement and that we aren’t interested in the types of variable bonuses schemes that the company has been proposing […]