Extreme times require extreme measures and rigorous planning, as shown in the Cleveland-Cliffs business update on April 15. Cleveland-Cliffs claims that its liquidity is assured during the COVID-19 crisis even under “extreme stress test assumptions.” Liquidity in an extreme scenario, not including proceeds from additional financing, would reach a trough of $370 million in September […]
Nucor Executive Vice President Ladd Hall will retire on June 20 after 39 years with the company. Hall began his career at Nucor Steel-Utah in 1981 in sales, progressing through several managerial positions until his promotion to Vice President of Nucor in 1994 and to Executive Vice President in 2007. “Ladd has been an exceptional […]
Liberty Steel Group has shifted its executive leadership in order to better manage the impact of COVID-19. The group’s board of directors, based in London, will be chaired by Sanjeev Gupta who also serves as CEO. International operations in the U.S. and Australia will be overseen by Regional President Dak Patel who will continue in […]
U.S. Steel will idle furnace #8 at Gary Works due to low market demand. The furnace was restarted in late 2019 to supplement production during a scheduled maintenance outage for the #4 furnace in 2020. The #8 furnace has been banked in order to quickly restore production should market conditions improve. “We are not in […]
Nucor has idled its direct-reduced-iron facility in Louisiana due to impacts from the coronavirus. “With the state of Louisiana having been particularly hard hit by the COVID-19 outbreak and economic uncertainty nationwide, we have temporarily suspended operations at our Nucor Louisiana direct reduced iron plant,” said a spokesperson for Nucor. “Our steel mills that use […]
Cleveland-Cliffs will temporarily idle Northshore Mining in Minnesota and Tilden Mine in Michigan due to current market conditions. The iron ore supplier plans to work down current inventory from the operations to fulfill its commercial agreements with steel customers. Demand is down at U.S. steel mills, with several adjusting production due to closures in the […]
ArcelorMittal plans to idle the #3 blast furnace at Indiana Harbor in East Chicago, according to a report by the Northwest Indiana Times. A memo from USW Local 1010 President Steve Wagner to members stated that the company “has mandated that all employees with less than two years be laid off.” “This is not in […]
By CRU Analyst Iris Speelmanns, from CRU’s Steel Monitor As the Covid-19 pandemic spreads across the world, its effects on the steel industry are growing. In this weekly report, we will be closely monitoring developments in the steel industry with a focus on disrupted hot metal production and capacity utilization and these will feed into […]
ArcelorMittal USA will idle the #6 blast furnace at Cleveland Works due to reduced demand resulting from coronavirus closures in the automotive sector. ArcelorMittal USA President and CEO John Brett said in an April 3 letter to employees that extended closures in the automotive sector and reduced demand in other segments require the company to […]
BlueScope Steel says it will delay the North Star BlueScope expansion under way in Ohio for six months to minimize cash expenses as part of its strategy to maintain financial health during the COVID-19 crisis. The full scope of the project will resume when conditions improve. BlueScope Managing Director and CEO Mark Vassella said, “We […]
Cleveland-Cliffs will idle AK Coal due to reduced demand for coal in internal operations resulting from manufacturing shutdowns related to the COVID-19 pandemic. The company said in a statement: “Cleveland-Cliffs continues to evaluate internal operational requirements for metallurgical coal required for steelmaking. Significant reductions in manufacturing in the United States resulting from the COVID-19 pandemic, […]
Tubular steel producer Vallourec said Monday that it will lay off more than 900 employees at its U.S. plants due to a significant drop in activity by its oil and gas customers. The layoffs will be implemented in the coming weeks across all plants and support functions and impact over one-third of Vallourec’s workforce and contractor […]
Nucor’s direct reduced iron (DRI) facility in Trinidad has been shut down by the government in its effort to control COVID-19 infections. “Our Nu-Iron direct reduced iron plant has been temporarily taken down in order to comply with government orders to combat the spread of COVID-19 in Trinidad,’ said Nucor spokesperson Katherine Miller. “With the […]
Schnitzer Steel Industries, a metals recycler and long products producer, posted revenue of $439 million for the second quarter of FY 2020. Net income was $4.5 million for the quarter, improving from a $7 million loss in Q1 but down significantly from income of $13 million in Q2 2019. Autos and Metals Recycling achieved operating […]
Cleveland-Cliffs said it will idle all of AK Steel Mansfield operations for the next two weeks to better align production with current weakness in the automotive market. A 3-4 day maintenance outage was already scheduled for the facility and the company decided to extend it for a two-week period. AK Steel Mansfield, in north central […]
Allegheny Technologies will idle its operations at Midland, Pa., by the end of June 2020 due to the Section 232 tariffs. A&T Stainless imports semi-finished stainless steel slab products from Indonesia to produce 60-inch wide Direct Roll Anneal and Pickle (DRAP) stainless sheet products. The imported steel slabs are subject to 25 percent tariffs under […]
Business remains surprisingly strong for wholesalers who sell galvanized steel products to the HVAC sector, considering the devastating impact of the coronavirus on the economy. In a conference call this morning, members of the Heating, Air Conditioning & Refrigeration Distributors International (HARDI) said the construction industry has dodged the worst of the virus’ effects so […]
Wholesalers in different parts of the country tell a different story about how the coronavirus restrictions are impacting their businesses. In one sense, the virus is picking winners and losers by geography. In a conference call this morning, members of the Heating, Air Conditioning & Refrigeration Distributors International compared notes on their experiences in dealing […]
We are in uncharted waters. The key is not to panic. Learn to separate fact from rumor. I repeat, learn to separate fact from the rumors that tend to envelope this industry. For example: The “rumor” is the domestic steel mills are getting huge order cancellations. Is that a fact or is it conjecture based […]
U.S. Steel announced on Friday a series of aggressive actions to mitigate the impact of the coronavirus and significant demand changes in the oil and gas industry. Flat-rolled: Gary Works—U.S. Steel will idle the #4 blast furnace at Gary Works immediately, moving up a 48-day outage originally planned for April. The scope of the planned […]
AK Steel will idle the C blast furnace at Dearborn Works beginning this week for an undetermined period of time. Dearborn has been impacted by recent shutdowns in the automotive industry and has been criticized for its handling of safety measures during the coronavirus crisis. At least one employee at Dearborn has tested positive for […]
Worthington Industries reported net sales of $764.0 million and net earnings of $15.3 million for its fiscal 2020 third quarter, ending Feb. 29, 2020. Sales were down 13 percent from the prior year due to lower average selling prices in Steel Processing and lower volumes in Pressure Cylinders. Steel Processing net sales were down 12 […]
Despite a flurry of maintenance projects completed in the second half of 2019, several steelmakers are planning outages or idling of operations during the next few months. Steel producing mills have been designated as essential critical infrastructure and are not subject to state COVID-19 shutdowns. ArcelorMittal, however, is adjusting production by idling its IH-4 furnace at Indiana Harbor […]
U.S. Steel and Tenaris will adjust production of tubular products in the U.S. due to low oil prices and declining demand in the oil industry. U.S. Steel plans to idle tubular operations in Texas and Ohio, affecting 850 employees. “U.S. Steel advised employees that Lone Star Tubular Operations in Lone Star, Texas, and Lorain Tubular Operations in […]
NLMK USA’s plant in Farrell, Pa., is running a full schedule right now, but will idle its hot strip mill next week as the plant is low on slabs. The mill is dependent on imports of slabs. Its allocation of slabs for the second quarter does not open until April 1. The mill expects slabs […]
Commercial Metals Company reported a strong second quarter for fiscal year 2020 ending Feb. 29. The Americas Mills segment achieved record second-quarter shipment levels while the International Mill had the highest shipment level for second quarter in 12 years. Earnings for the quarter were $63.6 million on net sales of $1.3 billion. Gross margins jumped […]
U.S. Steel’s performance in the first quarter of 2020 was better than expected with adjusted EBITDA projected at $30 million. “Our Flat-rolled segment results are expected to be better than anticipated as strong operating performance across our footprint, continued cost improvement, and seasonally strong shipment volumes more than offset the typical seasonality of mining,” said […]
Steel mills in the U.S. are taking precautions to reduce risks to workers and operations from the coronavirus pandemic as production continues. Social distancing and proper hygiene/sanitation is encouraged, non-essential business travel is cancelled, air travel is banned and those personnel who can perform their jobs remotely are allowed to do so. Visitors are limited […]
Steel Dynamics and Nucor are both expecting improved earnings for the first quarter of 2020 due to higher steel prices and increased shipments. So far, the impact from the COVID-19 outbreak has been minimal on supply chains and operations, said the companies. Disruptions are expected, however, as more manufacturers temporarily suspend production and construction activity […]
Australian steelmaker BlueScope withdrew its earnings guidance for the second half of FY 2020 based on challenges it foresees related to the COVID-19 global outbreak. Previously, the company believed earnings would be similar to 1H FY 2020 earnings of $302.4 million. Although group performance to date, including stable performance at North Star BlueScope, has been in […]