Mexican steel maker Altos Hornos de México, S.A.B. de C.V. (AHMSA) earnings in the third quarter of 2019 declined across the board due to unfavorable steel market conditions. AHMSA EBITDA plummeted 149.6 percent from 3Q 2018 for a loss of $40.4 million. EBITDA in the steel segment plunged 132.1 percent for a loss of $31 […]
U.S. Steel announced that it has completed $1.1 billion of financing activity that will support its previously announced growth projects. “The closing of these financing activities marks another successful step in the execution of our ‘best of both’ strategy,” said President and CEO David B. Burritt. “I am thankful for the strong support from our […]
JSW Steel divisions in Ohio and Texas both reported EBITDA losses in the second quarter of FY 2019-20. The Ohio mill increased production and revenue, which was offset by inventory writedowns and lower steel prices during the quarter. JSW Steel-Ohio produced 87,337 metric tons of hot rolled coil during the quarter, an increase from 80,037 […]
NLMK USA noted weaker demand in the pipe manufacturing and construction segments in its third-quarter earnings report. Prices dropped 13 percent from the second quarter and shipments declined 6 percent to 550,000 metric tons, resulting in a loss for the company. Revenue for the segment fell 18 percent from the second quarter to $391 million. […]
Reliance Steel & Aluminum Co. did better than anticipated in the third quarter, generating net sales of $2.69 billion. Shipments were higher than expected due to strength in Reliance’s largest segment, nonresidential construction, slipping just 2 percent compared to a typical seasonal decline of 4-6 percent. Demand for carbon structural and tubing products helped boost […]
SSAB Americas saw its third-quarter profits decrease to $54.5 million from $82.2 million in Q3 2018 due to lower plate steel prices. Sales were down 2 percent from the second quarter to $490 million and 6 percent from a year ago. Demand during the quarter was relatively stable with shipments of 521,000 metric tons, up […]
Commercial Metals Company is enjoying the rewards of its purchase of four rebar mills and 33 fabrication facilities from Gerdau. The acquisition added 2.5 million tons of rolling capacity and increased fabrication capacity by almost 50 percent. “The systems integration was flawless and got completed in less than four months, well ahead of schedule,” said […]
Nucor reported a decline in financial results as expected for the third quarter of 2019. Net earnings were $275 million, down from $386.4 million in Q2 and $676.7 million in Q3 2018. Consolidated net sales fell 7 percent from the previous quarter to $5.46 billion. Steel shipments to outside customers declined 7 percent from last […]
Even after selling nearly half the company to U.S. Steel, Big River Steel intends to move ahead with its plans for a new EAF mill in Brownville, Texas, according to comments from CEO Dave Stickler to S&P Global Platts. Stickler said that a development company has been formed called Brownsville Investment Group LLC to handle […]
Steel Dynamics CEO Mark Millett enthusiastically spoke of the new steel mill planned for Sinton, Texas, during the company’s third-quarter earnings call. “We are excited about our Sinton, Texas, flat roll steel mill project, and the associated long-term value creation it will bring through geographic and value-added product diversification. This facility is designed to have […]
Commercial Metals Co. has shut down the melt shop at its steel rebar mill in Rancho Cucamonga, Calif., citing restrictive regulations and low-cost competition. “The burdensome regulatory environment and cost of doing business in California has put the Rancho Cucamonga melt shop at a severe cost disadvantage in the highly competitive rebar market,” said CMC […]
NLMK USA’s sales fell 6.0 percent to 549,000 metric tons in the third quarter of 2019 compared to the second quarter, said NLMK Group in a trading update today. Declining volume was the result of decreased HRC sales due to lower demand from the tube and pipe sector. Shipments of hot-dipped galvanized (HDG) also decreased […]
U.S. Steel unrolled a new operating model on Tuesday that is expected to deliver $200 million of annual fixed cost savings by 2022. The new model includes a realignment of the company’s leadership team. The changes will be effective Jan. 1, 2020, and closely follow the recently announced investment in Big River Steel. “Our enhanced […]
U.S. Steel released preliminary third-quarter 2019 results, revising its earnings guidance upward to an adjusted net loss of $35-$45 million or $0.20-$0.25 per diluted share. Previous guidance estimated a net loss of around $0.35 share. U.S. Steel said stronger shipments and better than expected performance by its flat-rolled segment drove the adjusted outlook, as well […]
Liberty Steel USA will get a new $25 million electric arc furnace at its Georgetown, S.C., rolling mill next year. Georgetown’s aging EAF has an annual capacity of 500,000 metric tons, but actual production has fallen far short of that amount. “We have a very efficient rolling mill at Georgetown and we now want to […]
JSW USA has filed a challenge to a tariff exclusion denial with the U.S. Court of International Trade. In the first tariff exclusion case to reach the USCIT, JSW claims that Commerce ignored evidence presented regarding the domestic availability of steel slab. The company is requesting a refund of the tariffs it was required to pay. […]
With U.S. Steel buying almost 50 percent of Big River Steel and holding an option on the remainder over the next four years, SMU thought it an appropriate time to review the list of announced changes being made by the mills in the United States, Canada and Mexico. We reviewed this listing with the four […]
By CRU Principal Analyst Josh Spoores and Analyst Ryan Smith U.S. Steel has announced a 49.9 percent stock acquisition with an option to acquire the remaining 51.1 percent within the next four years, in smaller rival U.S. flat products new entrant Big River Steel. In its announcement, U.S. Steel labelled this acquisition, alongside its investment […]
EVRAZ NA President “Skip” Herald is the newest addition to the American Iron and Steel Institute Board of Directors. “Skip Herald has had an impressive career, and I am excited to welcome him to the AISI Board of Directors,” said AISI Chairman and AK Steel CEO Roger Newport. “Skip’s wealth of experience will be an […]
Steel Market Update reported in the last issue on the sudden closing of Bayou Seel in Louisiana, and a few readers took issue with some comments in the article (Trade War Contributes to Bayou Steel’s Demise). In statements that were widely reported, Gov. John Bel Edwards blamed the closure on the Trump administration tariffs. The […]
A new solar project in Pueblo, Colo., will bring the state one step closer to its goal of providing 100 percent carbon-free electricity by 2050 and give EVRAZ Rocky Mountain Steel predictable electricity prices through 2041. The 240-megawatt Bighorn Solar project will be built, owned and operated by Lightsource BP on property owned by EVRAZ […]
U.S. Steel announced today it will acquire a 49.9 percent ownership interest in Big River Steel at a purchase price of $700 million with the intent to acquire the remaining shares within the next four years. U.S. Steel has committed financing to execute the transaction. The implied enterprise value of Big River is approximately $2.325 […]
The news today that U.S. Steel plans to purchase a 49.9 percent interest in Big River Steel, with an option to buy the rest within the next four years, surprised the market. But most of the steel buyers polled by Steel Market Update view the pairing of one of the nation’s oldest integrated producers with […]
Merchant bar producer Bayou Steel in LaPlace, La., closed its doors without warning on Sept. 30, putting 376 stunned employees out of work. A letter to parish and state workforce officials cited “unforeseen business circumstances” and a lack of financing as reasons for the closure. The plant operates an electric arc furnace turning scrap metal […]
By CRU Analysts Ruilin Wang and Kevin Bai China has released a draft emission control policy document for the 2019-2020 winter heating season (WHS). Although the overall target for air pollution control is tighter than last year, it will not lead to greater steel supply restrictions because: • Clear regional targets to meet ultra-low emission standards […]
Mexican steel producer AHMSA is seeking a way out of its financial difficulties including a possible sale of the company, according to various press reports. Altos Hornos de México is recovering from a corruption scandal that rocked company finances and coincided with a downturn in market conditions. Board of Directors President Alonso Ancira was accused […]
The Canadian Steel Producers Association has appointed Algoma Steel CEO Michael McQuade as Chairman of the Board of Directors. McQuade was appointed CEO of Algoma in March 2019. Prior to assuming the leadership role at Algoma, McQuade accumulated more than 35 years of experience at Stelco Inc. He moved through a variety of roles at […]
Worthington Industries reported net sales of $855.9 million, a 13 percent year-over-year decline, and a net loss of $4.8 million for its fiscal 2020 first quarter, driven by lower volume and lower average selling prices in steel processing. Worthington was also hit by a pre-tax impairment and restructuring charge of $43.5 million primarily related to […]
Members of the United Auto Workers at AK Steel Coshocton Works ratified a new 46-month labor agreement on Sept. 20. The agreement covers approximately 300 hourly production workers and maintenance employees at the facility and will be effective until July 31, 2023. “We appreciate the work of the Union leadership with our management team to […]
U.S. Steel is feeling the pain of falling steel prices and deteriorating market conditions. The company expects an earnings loss of 35 cents per diluted share for the third quarter of 2019 compared to a profit of 39 cents per share in the second quarter. The company followed Nucor and Steel Dynamics in lowering guidance […]