Indiana Harbor West is not on the cutting block according to ArcelorMittal USA CEO Andrew Harshaw. In response to media reports that an asset rationalization may occur involving the Chicago area mill, Harshaw said, “What I want to assure you is that we have no intention of reducing our blast furnace capacity in the United […]
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, […]
ArcelorMittal responded Monday to rumors of a potential closure of Indiana Harbor West in East Chicago. Key Banc reported that sources indicated “ArcelorMittal USA is taking steps to reduce its sheet hot end and finishing capabilities via the closure of Indiana Harbor West.” A spokesperson at ArcelorMittal USA, in an email to Steel Market Update, […]
Contract negotiations have kicked off between the United Steelworkers and US Steel Corp. USW officials and US Steel representatives met in Pittsburgh to begin ironing out the details of a new three year contract to replace the current one due to expire Sept. 1. The talks come at a time when the steel industry is […]
Earlier this week US Steel came out with a $40 per ton price increase. Since then the other mills have been eerily quiet not yet jumping on the bandwagon. It is normal for the smaller mills to wait and see if the larger mills will follow the lead. So far this week, they have not. […]
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 […]
ArcelorMittal USA warns that low capacity utilization of hot strip mills cannot continue. “It is not sustainable to operate multiple HSMs at low utilization rates when the same volume of steel could be produced by few HSMs at higher utilization rates,” writes CEO Andrew Harshaw, in the ArcelorMittal USA blog Raw. Harshaw notes record levels […]
Mexican steelmakers are feeling the pressure from unfairly traded steel. In a joint statement on last week, Altos Hornos de Mexico (AHMSA), De Acero, Tubacero and ArcelorMittal accused Russia, China and Turkey of dumping steel at prices below production costs. In a full page newspaper ad, the steel companies urged President Enrique Pena Nieto to […]
At the end of July, Steel Market Update founder and publisher, John Packard, will travel from Two Harbors, Minnesota to Indiana Harbor, Indiana on the M/V James R Barker. The James R Barker is an iron ore supply ship owned by Interlake Steamship Company. The 1004 foot long vessel will carry approximately 63,000 tons of […]
Seaborne Freight The dry bulk market may have bottomed out in May and has been steadily creeping higher during June. The Baltic Dry Index closed at 823 on Friday, June 26. The BDI peaked on November 5, 2014 when the Index was at 1484 and dropped as low as 509 on Feb. 18, 2015. The […]
Worthington Industries closed fourth quarter FY 2015 with net sales of $846 million and net earnings of $28.9 million. Quarter earnings were negatively impacted by pre-tax impairment, restructuring and other charges, totaling $6.5 million. Earnings in Q4 2014 were $33.2 million. Steel processing net sales dropped 4 percent y/y to $540 million due to lower […]
Earlier today (Tuesday, June 23rd) HARDI sponsored their monthly galvanized steel conference call. On the call were HVAC wholesalers who sell galvanized steel sheet and coil to the HVAC mechanical contractors around the United States and Canada. Also on the call were a number of galvanized steel service centers and manufacturing companies, all associated with […]
The Mexican government said it will impose import duties on cold-rolled steel from China following an antidumping investigation initiated by Altos Hornos de Mexico (AHMSA), Ternium and other Mexican steel companies. The Friday, June 19 decision will put tariffs of 65.99 percent imports on imports from Baoshan Iron & Steel Co Ltd and 82.08 percent […]
Steel Dynamics reported adjusted second quarter earnings guidance in the range of $0.20 to $0.24 per share, an improvement over $0.17 per share in first quarter. Not included in the earnings guidance is $29 million of expenses associated with the idling of the Minnesota operations and $9 million in reduced earnings due to a planned […]
Global steel production in 12 months through May totaled 1.672 billion metric tonnes with a capacity of 2.2 billion tonnes according to the World Steel Association. Capacity utilization on a three month moving average, (3MMA) basis was 72.2 percent unchanged from April. China accounted for 50.2 percent of global production in May. Asia as a […]
Written by: John Packard, Publisher, Steel Market Update Last Thursday evening Ray Culley (SMU) and I attended the Chicago regional meeting of the Association of Steel Distributors (ASD) at the Hotel Sofitel Water Tower in downtown Chicago. The speaker for the evening was Chicago based trade attorney Larry Friedman. His practice concentrates on the representation […]
In its second quarter 2015 earnings guidance, AK Steel said it expects to report a net loss of $0.37 to $0.42 per diluted share of common stock. The company attributed negative results to low steel prices caused in part by high levels of unfairly traded imports. Shipments of 1.8 million were up 3 percent from […]
Steel Market Update has been asked if the domestic steel mills have made any moves to restart idled blast furnaces in order to increase production due to dumping suits, price increases and the anticipated stronger order book. People also want to know if ArcelorMittal and US Steel are building slab inventories in order to have […]
Nucor’s second quarter guidance indicates earnings in the range of $0.20 to $0.25 per diluted share, below analyst consensus of $0.30 per share for the quarter. Earnings decreased from Q2 2014 at $0.46 per share and are comparable to $0.21 in Q1 2015. Overall operating performance is down from Q1. Prices are beginning to stabilize, […]
Based on Steel Market Update (SMU) analysis of the recently released MSCI service center inventory and shipment data, total service center carbon steel shipments decreased by 178,700 tons in May to 3.126 million tons. Shipping days at 20, were two less than in April. On a tons per day basis (t/d) shipments increased from 150,200 […]
The USW negotiating committee for workers at ArcelorMittal USA met in Pittsburgh this week to begin working on new contracts. The current three year contracts will expire at 11:59 pm. EST, September 1, 2015. The master Basic Labor Contract covers employees at 12 ArcelorMittal USA facilities; three additional sites have contracts that will expire concurrent […]
The Metal Service Center Institute (MSCI) released distributor shipment and inventories for the month of May on Monday of this week. In the MSCI press release they reported, “U.S. shipments of steel products decreased substantially in May compared to a year ago….” They went on to report, “In May 2015, U.S. service center steel shipments […]
The $1.3 billion Big River Steel mill, in Osceola, Ark., is beginning to take shape. The site excavation, totaling 1,178,000 cubic yard, is nearly 100 percent complete, said Mark Bula, Chief Commercial Office in a progress report to Steel Market Update. About 26 percent of the 235,000 cubic yards of concrete that will be needed […]
Steel Market Update conducted our flat rolled steel analysis (survey) last week. We began the process on Monday (June 1st) and approximately 90 percent of the responses were made prior to the filing of the anti-dumping and countervailing duty suit on corrosion-resistant steel (galvanized, Galvalume, galvanneal, aluminized, etc.). We invited approximately 600 companies to participate […]
US Steel has called 149 employees back to work at Fairfield Works. Currently just 76 workers are on layoff from the original 225 workers at the end of May. US Steel is in the process of restarting the Fairfield Works blast furnace. US Steel spokesperson Sarah Casella told the Birmingham Business Journal that the Jan […]
Phase 1 in the sale of US Steel Canada has been completed. Thirty-nine potential bidders for the USSC assets have signed non disclosure agreements, according to the latest report by court monitor, Alex Morrison. Multiple letters of intent were received indicating interest in: a. acquiring on or both of Lake Erie Works and Hamilton […]
Steel Market Update will have a number of articles in today’s issue of our newsletter about the corrosion resistant trade cases filed yesterday by six U.S. steel mills. We will discuss what has to be proved, the timetable that a case goes through at both the Department of Commerce (DOC) and the International Trade Commission […]
Steel Market Update has written numerous articles about the corrosion resistant trade case filed by six domestic steel mills against five foreign countries. The petition which called for anti-dumping and countervailing duty action will now go through the proper channels at the US Department of Commerce (anti-dumping) and the International Trade Commission (countervailing duty). There […]
A US Steel spokesperson reports that the Fairfield Works blast furnace is in the process of restarting. Notices were given last week to employees and customers that a blast furnace at Granite City Works will continue in operation. Analysts at Key Banc Capital Markets had the following comments on US Steel. “Fairfield is being restarted […]
The world’s steel producers managed to pump out 1.665 billion metric tons of steel (1.84 billion net tons) during 2014 according to the World Steel Association (WSA) which released their 2014 data book earlier today. According to the WSA, the United States was the third largest steel producing country behind China and Japan. This is […]