AK Steel has shut down the blast furnace at Ashland Works for the second time this year. A “hearth chill” incident occurred last week (described as excess water in the furnace) according to AK Steel officials during the company’s earnings conference call Wednesday, and further maintenance was anticipated. In an email to SMU, Mike Wallner, […]
Severstal North America reported strong growth in sales volume in the second quarter, up 6 percent quarter over quarter. Revenue of $1.06 billion was 4.9 percent higher than the previous quarter driven by higher sales volume. EBITDA was up a record 33.3 percent in second quarter to $100 million reflecting operational improvement at Severstal Dearborn […]
US Steel did surprisingly well in the second quarter, coming back from a weather impacted first quarter to narrow losses and show operating profit. US Steel reported a net loss of $18 million in the second quarter, performing better than expected. Income from operations came to $132 million. Net sales were $4.40 billion as compared […]
OAO Severstal posted a net loss of $661 million for second quarter that includes a non-cash loss estimate of $1.066 billion on the disposal of Severstal Dearborn, Severstal Columbus, and PBS Coal and a foreign exchange gain of $199 million. Excluding these items, Severstal would have posted a net profit of $206 million. Second quarter […]
Once per month, HARDI sponsors a conference call for those HARDI members who are involved with the sale and distribution of galvanized steel to the HVAC and related industries. Steel Market Update participates in these calls along with wholesalers around the United States and Canada. Since the last HARDI conference call we have seen a […]
AK Steel posted an adjusted profit in second quarter despite adverse weather early in second quarter that delayed iron ore shipments forcing reduced production. Adjusted net income was $2.9 million. AK Steel shipped 1,397,500 tons of steel in the second quarter for sales of $1.53 billion. Average selling price rose 3.2 percent to $1,095 per […]
US Steel reported a net loss of $18 million in the second quarter, performing better than expected and narrowing losses. Net sales were $4.4 billion as compared to $4.448 billion in first quarter. Total steel shipments were 5.029 million tons, down from 5.124 million tons in the previous quarter. Flat rolled shipments were 3.527 million […]
Big River Steel CEO John Correnti says government should “stay out” of private industry. What appeared to be a contradiction after receiving more than $125 million in incentives from the state of Arkansas, Correnti stated in an interview with Arkansas Business that states have to invest in big business in order to stay competitive, but […]
Reliance Steel and Aluminum reported a net income of $96.5 million for second quarter, up 11 percent from the previous quarter and 19 percent year over year. Sales were at a record $2.62 billion, up 2.5 percent on a quarterly basis. Improved metals pricing contributed to improved gross profit margins. Demand was below expectations with […]
Nucor announced consolidated net earnings of $147 million for the second quarter of 2014. Second quarter net sales increased by 4 percent to 5.29 billion compared to Q1 and 13 percent compared to Q2 2013. Steel shipments to outside customers totaled 6,370,000 tons, an increase of 1 percent q/q and 9 percent y/y. Steel production […]
With the announcement of the sale of Russian owned Severstal North America assets to AK Steel (Dearborn, Mountain State Carbon & Joint Ventures) and Steel Dynamics (Columbus) for $2.325 billion, the market is now asking what, or who, is next. There are two mills that are being mentioned. One, Gallatin Steel, a hot rolled mini-mill […]
Improved demand and higher prices in North America helped SAAB Americas report a strong profit for second quarter and the first half of 2014 after reporting losses in both time periods in 2013. SSAB Americas steel sales soared 15 percent year over year in the second quarter of 2014 and 9 percent on a quarterly […]
WASHINGTON, D.C. – The American Iron and Steel Institute (AISI) today announced the release of its 2013 Annual Statistical Report (ASR). The 2013 ASR shows that U.S. steel production, shipments, imports and exports all decreased in 2013 vs. 2012, as U.S. steel markets remained below pre-recession levels. U.S. steel shipments were at 95 million net […]
Following the announcement of the sale of Severstal NA to AK Steel and Steel Dynamics, Severstal sent out a letter on Wednesday evening explaining the sale to their customers with assurance that the two mills would continue to run as scheduled over the next few months. A copy of the letter is below: Dear customer, […]
NLMK USA sold 538,000 tonnes (593,033 net tons) of steel in the second quarter of 2014, an increase of 17.8 percent following low sale volumes in first quarter due to unfavorable weather conditions. Steel sales for the first half of 2014 totaled 994,000 tonnes (1.095 million net tons) due to stronger US demand, an increase […]
Severstal announced this morning that it has entered into a purchase agreement to sell Severstal Columbus and Severstal Dearborn steel mills to Steel Dynamics and AK Steel for $2.325 billion. Here is the press release: July 21, 2014, Moscow – OAO Severstal (MICEX-RTS: CHMF; LSE: SVST), (‘Severstal’, the ‘Company’), one of the world’s leading vertically […]
AK Steel has announced that it will acquire the Severstal Dearborn a cokemaking facility and three joint ventures from OAO Severstal for $700 million. Here is the AK Steel press release: West Chester, OH, July 21, 2014—AK Steel (NYSE: AKS) said today that it has signed an agreement to acquire Severstal North America’s integrated steelmaking […]
Steel Dynamics has announced the purchase of the Severstal Columbus steel mill for $1.625 billion in cash. According to the mill the purchase price will be financed with available cash and debt. The Columbus mill expands their hot rolled steel production by 3.4 million tons and broadens their product portfolio as well as geographical reach […]
On Monday, July 21, 2014 OAO Severstal announced the sale of their two steel mills located in the United States for $2.325 billion. The two mills, Severstal Dearborn and Severstal Columbus were purchased by AK Steel and Steel Dynamics (SDI), respectively. The acquisition of the Severstal assets by two existing steel suppliers is being touted […]
Steel Dynamics announced net income of $72 million in second quarter 2014 on net sales of $2.1 billion. In comparison, second quarter 2013 net income was $29 million and sequential quarter net income was $39 million. Sales were 13 percent higher both year over year and sequentially. All reporting segments showed higher profitability after the […]
Essar Steel Algoma would like to stress that it is has not filed for bankruptcy or commenced insolvency proceedings in Canada or the U.S. according to a clarification document received by SMU. After reaching an agreement with its parent company for an infusion of cash, deleveraging of its balance sheet, and refinancing of its senior […]
Steel Market Update is well aware of the rumors which have been circulating regarding the potential sale of the Severstal North American steel mills. Late last week we learned from our sources that Steel Dynamics and AK Steel were close to purchasing the two U.S. steel mills owned by OAO Severstal out of Russia. Steel […]
Essar Steel Algoma has filed for Chapter 15 bankruptcy protection at the U.S. Bankruptcy Court in Delaware and the Ontario Superior Court of Justice as part of its restructuring efforts. The filing under Chapter 15 in the U.S. is a recognition proceeding,” said a spokesperson for Essar Steel Allgoma. “The sole purpose of the US […]
Steel Market Update is a member of an association connected to the construction industry called HARDI. HARDI stands for Heating, Air-conditioning & Refrigeration Distributors International. HARDI and The Institute for Trend Research (ITR), an economic forecasting company, work together to gather economic data to provide a forecast to the HARDI members located in the United […]
Total steel shipments (all products) out of the U.S. service centers totaled 3,687,600 tons according to data released by the Metal Service Center Institute (MSCI) for the month of June. This represents an increase of 10.2 percent compared to June 2013. There were 21 shipping days during June 2014 compared to 20 shipping days last […]
Total service center carbon steel shipments in June declined by 56,500 tons to 3.527 million tons. This was almost exactly the same decline as experienced in May and which together almost wiped out the April gain. Shipping days were 21 in June, the same as in April and May. April was the highest monthly shipping […]
Canadian shipments for all steel products in the month of June were 481,000 net tons, a decrease of 5.6 percent from the month before, but an increase of 6.0 percent from June 2013. Inventories at the end of the month stood at 1,391,100 tons, up 0.4 percent from last month but down 6.3 percent from […]
Steel Market Update is a member of an association connected to the construction industry called HARDI. HARDI stands for Heating, Air-conditioning & Refrigeration Distributors International. HARDI and The Institute for Trend Research (ITR), an economic forecasting company, work together to gather economic data to provide a quarterly forecast to the HARDI members located in the […]
North Star Bluescope Steel will not be building a DRI plant at its steelworks in Delta, Ohio. The company, jointly owned by Bluescope and Cargill Inc., announced that it had concluded a feasibility study on building a DRI facility and found that the “forecast risk adjusted returns are not sufficiently attractive to justify the investment.” […]
Essar Steel Algoma Inc., announced on Wednesday that Esssar Global Fund Limited, will provide $300 million of equity infusion along with planned refinancing of Algoma’s senior secured debt. The following press release from Essar Steel Algoma contains details of the agreement. SAULT STE. MARIE, ONTARIO, July 16, 2014 – Essar Steel Algoma Inc. (“Algoma”) announced […]