Essar Steel Algoma reported CDN $85.2 million EBITDA for second quarter FY 2015 ending September 30, 2014. Net income was CDN $52.9 million compared to a net losses of CDN $80.8 million in Q1 FY 2015 and CDN $110.1 million in the same period in 2013. Shipment volume increased 28 percent from the previous quarter […]
Big River Steel has asked the Arkansas court to dismiss a federal lawsuit by Nucor Corp aimed at preventing construction of the new mill. In documents filed Friday, Big River steel called the suit by Nucor “a scorched earth campaign.” Nucor claims that Big River Steel’s mill will violate the Clean Air Act, an allegation […]
A new steel mill for Ohio, that has been in planning since 2005, is getting closer to reality but in a revised version. New Steel International hoped to build a mini mill at Franklin Furnace in Scioto Country but it has agreed to downsize to a pig iron plant and a 300 megawatt cogeneration facility. […]
US Steel received approval on Wednesday from the Ontario Superior Court to proceed with its financing plan for US Steel Canada. A $185 million DIP (debtor-in-possession) loan will keep US Steel Canada operations running through December 2015 while parent company US Steel figures out a restructuring plan under the Canadian Companies Creditors Arrangement Act (CCAA). […]
Nucor Corp. has completed the acquisition of Gallatin Steel Company in Ghent, Ky., for a purchase price of approximately $770 million. Gallatin’s strategic location on the on the Ohio River will expand Nucor’s access to the Midwest flat-rolled steel market and strengthen its position in the pipe and tube sector. Gallatin Steel has an annual […]
The bankruptcy protection hearing for US Steel Canada was cut short on Monday morning and again on Tuesday as lawyers worked behind the scenes to negotiate a deal on the debtor in possession loan (DIP) and employee pensions. The first meeting scheduled for Monday at 10:00 a.m. in Toronto did not begin until 11:00 a.m. […]
The USW and Ontario officials are determined to not go down easily in the fight to keep US Steel Canada alive. The $185 million that US Steel is loaning to US Canada in DIP financing is under hot dispute by union members and the province. The DIP (debtor-in possession) filing has been called “a thinly […]
Hot-rolled coil steel from Germany, China and France may soon be subjected to antidumping duties from Mexico. Mexico’s Ministry of economy has launched an investigation following a complaint by Ternium Mexico and Altos Hornos de Mexico (AHMSA) that imports of HRC from the three countries between 2011 and 2013 lowered prices and harmed Mexican producers. […]
Italian mill, Ilva Steel Italy expects bids from Indian steel producer JSW and a joint venture of ArcelorMittal and Italian steel processor Marcegaglia sometime within the next few days. ILVA owner Riva Steel shut down all of its plants except the Taranto-based Ilva in September 2013 after more than 1 billion euros ($1.25 billion) of […]
Nucor Corporation has received approval from the Federal Trade Commission for the $770 million acquisition of Gallatin Steel. The Company expects to close the deal in approximately ten days. “We are excited to be able to begin the process of integrating Gallatin Steel and our new teammates into the Nucor family,” said John Ferriola, Chairman, […]
SSAB, following its successful merger with Finnish steelmaker Rautaruukki, expects to reduce its annual cost base by SEK 1.4 billion ($194.7 million) over a three year period. In addition to cost synergies, SSAB expects to free up cash flow in the amount of SEK 500 million ($69.5 million)—half of it during 2015. The savings may […]
Essar Steel Minnesota announced Wednesday that it has secured funding to move ahead with completion of its $1.8 million taconite plant. Last month a bond deal was called off after the company failed to raise the required equity by the bond deadline. The amount of the funding was not disclosed but Essar Assistant General Counsel […]
To cap off its 30th anniversary, California Steel Industries, Inc. (CSI) announced production of the first pipe from the new electrical resistance welded (ERW) pipe mill at CSI Tubular Products (CSITP). The announcement coincided with celebration, invitation-only tour of the $100 million pipe mill at CSITP. The new mill will feature API (American Petroleum Institute, […]
All of SSAB’s U.S. facilities are running at full capacity according to SSAB CEO Martin Lindqvist. In an interview with Bloomberg, the head of the Swedish steel company said the “re-industrialization” of the U.S. and improved demand from the energy, automotive and heavy transport sectors is boosting profitability for SSAB’s US operations. North American orders […]
Evraz North America LLC has filed for an initial public offering (IPO) with the US Securities Exchange Commission. Evraz North America said it intends to use the proceeds from the share offering to complete acquisition of North American assets and repay debt to its Russian parent company Evraz. The number and price of shares to […]
Essar Steel Algoma announced a “turnaround performance” in their second quarter FY 2015 guidance for the period ending September 30, 2014. The company expects second quarter steel shipments to equal 680,000-690,000 tons with EBITDA of CDN $75-85 million, compared to 530,000 tons and CDN $12.4 million EBITDA in Q1. Second quarter EBITDA projections far exceed […]
On Wednesday, Steel Market Update (SMU) participated in a monthly steel conference call hosted by the Heating, Air-conditioning , Refrigeration Distributors International (HARDI). HARDI wholesalers supply galvanized sheet and coils to the mechanical contractors involved in residential, multi-family and commercial construction segments of the construction industry. Consolidation was the first topic of discussion with AK Steel […]
US Steel Hamilton Works will be put up for sale within two months according to court filings by US Steel Canada’s President and General Manager Michael McQuade. Lake Erie Works is expected to be placed for sale by March 15, 2015. A statement by US Steel Canada Director, Government and Public affairs follows: “From the […]
Essar Steel’s Canadian entities have been struggling with financing this year and now that Essar Steel Algoma problems appear resolved, Essar Steel Minnesota LLC (ESML) finds itself in dire need of capital. The $1.8 billion taconite plant under construction in Nashwauk, Minn., failed to raise the $361 million in equity needed in time to secure […]
Worthington Industries began its fiscal year 2015 with higher sales and solid net earnings. The company, located in Columbus, Ohio, reports net earnings of $44.2 million for FY 2015 first quarter, ending on August 31, 2014. Net sales totaled $862.4 million, up 25 percent compared to the first quarter of 2013. The consolidation of TWB […]
An explosion at US Steel Fairfield on Sunday evening resulted in the death of two worker and the severe injury of another. US Steel security and paramedics responded to the incident. Edward Lamar Bryant, 53, was pronounced dead on Sunday at UAB Hospital emergency room in Birmingham, Al. Leo Bridges and Mac Bedwell were transported to the […]
Steel Market Update attended the groundbreaking ceremony for Big River Steel in Osceola, Arkansas which was held on Monday, September 22nd. According to Big River Steel Chairman and CEO John Correnti (and the sign at the entrance to the work site), the mill will be making steel in 550 days. A groundbreaking ceremony is much […]
Creditors of US Steel Canada are wondering how they are going to recover the money owed to them by the steel company. The Hamilton Spectator reports that US Steel Canada owes more than $94 million to contractors and suppliers, 190 of which are in the Hamilton area. The CCAA process prevents creditors from suing USS […]
Earlier today one of the steel analysts shared the most recent world production data for the month of August. Chinese mills now produce 51.1 percent of all of the world”s steel. However, the Chinese markets are slowing and the question is what (or where) will the Chinese mills be able to ship steel by the […]
Total service center carbon steel shipments in August decreased by 61,400 tons to 3.477 million tons. Shipping days also decreased from 22 to 21. On a tons per day basis (t/d) shipments increased from 160,900 tons in July to 165,600 in August. All three months June, July and August had the best t/d shipments of […]
The Metals Service Center Institute (MSCI) released shipment and inventory data on the U.S. service centers this week. Total steel shipments of all steel products rose on a daily basis in August compared to July. The daily shipment rate was 173,000 net tons and shipments totaled 3,634,000 tons. The number of tons shipped was essentially […]
Canadian shipments for all steel products in the month of August were 456,600 net tons, a decrease of 5.3 percent from the month before and a decrease of 4.6 percent from August 2013. Inventories at the end of the month stood at 1,499,500 tons, up 2.2 percent from last month and up 8.0 percent from […]
US Steel announced they will seek court protection from creditor claims against US Steel Canada under the Companies’ Creditors Arrangements Act (CCAA). In the meantime US Steel will provide CA $185 million (US$165 million) to secured debtor-in-possession financing to support the Canadian mills through the end of 2015. For now, US Steel Canada will carry […]
Steel Market Update (SMU) conducted our mid-September flat rolled steel market analysis this week. We invited slightly more than 600 companies to participate in the latest survey which analyzes various trends which affect the flat rolled steel market. One set of questions had to do with the consolidation of the steel mills as SDI and […]
Steel Dynamics Inc. expects profits from third quarter steel operations to surpass second quarter and year over year results. In their third quarter guidance, SDI indicated earnings of $0.34 to $0.38 per diluted share that will include before tax charges of $34 million related to the acquisition and financing of Severstal Columbus. Shipments and metal […]