Worthington Industries, Inc. announced Wednesday that it has signed an agreement to buy Rome Strip Steel Company, Inc. for an undisclosed amount. Rome Strip Steel is based in Rome, N.Y., and has a warehouse facility in Walhalla, S.C., Employing 130 people., Rome manufactures cold rolled strip steel primarily for the automotive industry. The companies capabilities […]
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 […]
Flat rolled steel prices have been dropping over the past few weeks and the wholesalers who service the mechanical contractors are concerned as the pace of the price decline quickens. Earlier today Steel Market Update participated in the HARDI sponsored galvanized steel conference call. HARDI (Heating, Air-conditioning, Refrigeration Distributors International) wholesalers supply galvanized sheet and […]
Esmark Inc. can finally celebrate the acquisition of Zelezara Smederevo Steel Works. Chairman and CEO James Bouchard announced Monday that Esmark Europe had been officially notified by the Republic of Serbia as the winning bidder for the steel works. The recently formed entity Esmark Europe BV will have a controlling 80.1 percent stake in the […]
Now that Essar Steel Algoma has its liquidity problems under control, the company is embarking on a CDN $350-$400 million investment plan in its steel mill located in Canada that will span the next 5 to 7 years. The plan includes optimizing operating capability, enhancing product quality, modernizing production lines and expanding the company’s product […]
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 […]
Steel Market Update received an email late last week that spoke to the problems the domestic steel mills are facing right now: a weak global steel market, strong dollar, all U.S. production facilities up and running, growing steel inventories, low in-put costs and a collapse in demand from the energy sector. We thought our readers […]
Low oil prices and the proliferation of pipe and tube imports at below market prices are causing manufacturers to idle mills and lay off workers. The latest round of layoffs comes from Tenaris which announced it will lay off 500 employees in Conroe, Texas and in Blytheville, Arkansas. “The energy industry’s present circumstances have driven […]
US Steel Canada has until Tuesday to file the necessary papers to extend the creditor protection order that is set to expire on January 23. The extension is likely to be granted as long as USSC shows progress towards restructuring plans for Lake Erie Works and Hamilton Works—progress that USSC says is continuing. “The CCAA […]
A report by the German Federal Office for Information Security (BSI) reveals that in 2014 a German steel mill suffered serious physical damage from malicious hacking of its computer system. Unknown hackers broke into the mill’s office network with “sophisticated spear phishing” and worked their way through to the production network. The intrusion caused multiple […]
Commercial Metals Company (CMC) reported net sales of $1.7 billion for the first quarter of FY 2015, a four percent increase year-over-year. Earnings from continuing operations totaled $38.3 million. Americas Recycling recorded an adjusted operating loss of $1.1 million due to a decline in ferrous scrap shipments and margins. The America Mills segment recorded adjusted […]
US Steel announced Monday it will idle its US Steel Tubular Operations in Lorain, Ohio. In a letter to employees, US Steel said the layoffs are a “result of a decline in tubular market conditions, which is impacting demand for the plant’s products.” Layoffs affecting 614 employees will begin around March 8 and continue through […]
Bidding has closed for Serbian steel mill Zelezara Smederevo with a decision due around February 1. Esmark Steel Group is considered the leading contender out of the 10 bids submitted to the Serbian government. The eventual buyer of the mill will be obligated to ramp up production of Zelezara’s second blast furnace to fifty percent capacity […]
The Chinese central government announced on Wednesday that it would remove the export rebate on certain boron-added steel products effective January 1, 2015. The move was anticipated by our sources in China however the impact of the move may be minimal and short-lived. Steel Market Update received the following information from one of our steel […]
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 […]
Mexican steelmaker Altos Hornos de Mexico SAB de CV (AHMSA) has agreed to repay $1.7 billion in debt owed to creditors. The agreement lifts a 15 year suspension of payments that was granted in 1999 after AHMSA failed to meet financial requirements related to debts of $1.90 billion. The suspension allowed AHMSA time to restructure […]
Total service center carbon steel shipments in November decreased by 763,700 tons to 2.979 million tons. This was mainly due to a decrease in shipping days from 23 to 19. On a tons per day basis (t/d) shipments also decreased from 162,700 in October to 156,800. In the eleven years 2004 through 2014 November shipments […]
AK Steel expects shipments to increase by 37 percent to 2 million tons in the fourth quarter of 2014. In the company’s earnings guidance, AK Steel said, despite $321 million in costs associated with the outage at Ashland Works, it expects higher EBITDA than third quarter and net income of $0.05 to $0.10 per diluted […]
US Steel Canada cash flow improved in October with receipts totaling $360.8 million. A ten percent increase in production at Lake Erie Works and a willingness by vendors to extend credit to the troubled company were the primary factors in USSC results, according to a report by court appointed monitor Alex Morrison. Although cash flow […]
Worthington Industries reported an increase in sales for the second quarter of its 2015 fiscal year ending November 30, 2014. Sales of $871 million, however, could not offset weakness in the company’s Engineered Cabs and Oil & Gas sectors. Net earnings fell to $29.5 million from $44.2 million in the previous quarter but surpassed Q2 […]
The European Steel Association (Eurofer) called for tougher anti-dumping and anti-subsidy regulations to level the international trade playing field for the EU. In a statement on Tuesday, Eurofer cites the growing absorption of EU steel demand by foreign imports. Although EU steel demand has grown only moderately in 2014, steel imports rose by 22 percent […]
The Metal Service Center Institute (MSCI) reported total steel inventories of 9,195,700 tons. This represents an increase of 15.2 percent above last year and when taking the current shipment rate into consideration, MSCI reported inventories as being 33.1 percent higher than November 2013. The daily shipment rate dropped from 170,100 tons per day (all products) […]
Nucor Corporation expects a “moderate” decrease in earnings in the fourth quarter along with a seasonal drop in operating performance. In the company’s fourth quarter earnings guidance, Nucor noted that exceptionally high import levels have put pressure on steel production and margins. A larger than expected decrease in outside shipments is expected in the fourth […]
Members of USW Local 1865 have ratified a new contract at AK Steel. The 42-month labor agreement covers more than 800 hourly and maintenance employees at Ashland, Kentucky Works. The new contract will take effect on March 1, 2015 and expire Sept. 1, 2018. “We are pleased that members of Local 1865 have ratified a […]
The Mexico Economy Secretariat announced an extension of the investigation of cold rolled coil from China. “There are enough elements to preliminary support that in the investigated period the imports of the subjected product were done under price discrimination and generated a harm threat to the national production,” said the secretariat on Monday. The products […]
US Steel is trying to raise flat rolled steel prices as lead times on hot rolled, cold rolled and galvanized slip into the 1st Quarter 2015. The General Manager of North American Flat-Rolled Marketing at US Steel sent an internal memo to the General Managers of Sales for the mill regarding current market conditions and […]
Low oil prices are giving truck carriers a break through diesel rates that are at their lowest level since February 2011. The average U.S. diesel price was $3.535/gallon as of December 8, 2014, a drop of $.34 from a year ago. Fuel savings add up during winter months when storms can cause delays and idling […]
ArcelorMittal has idled the Indiana Harbor West No. 2 galvanizing line and plans to shut down the electric arc furnace at Indiana Harbor Long Carbon. Employees were told that the No 1 aluminizing line at ArcelorMittal Indiana Harbor West is also under consideration for shutdown as the company shifts production to AM/NS Calvert in Alabama. […]
AK Steel has completed the reline of the blast furnace hearth at its Ashland, Kentucky Works and the furnace is back in full production. The maintenance and reline, which took 27 days, was moved up from 2015 to correct issues that occurred with the furnace earlier this year. AK Steel reports that the furnace is […]
A judge gave US Steel Canada permission on Friday to restart its Hamilton coke oven battery. A deal was formulated to allow coke produced at the plant to be sold to parent company US Steel in the United States. US Steel spokesperson Trevor Harris told SMU the restart is limited to the currently hot-idled coke […]