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 […]
Distributors supplying galvanized steel to the HVAC market report that demand and prices have remained surprisingly resilient so far, but they fear it’s only a matter of time before their business feels the full effect of the coronavirus crisis. “Your business is going to change. We are in the very early part of that change,” […]
Cleveland-Cliffs has officially closed on its acquisition of AK Steel Holding Corporation, integrating the value-added steelmaker with Cliff’s iron ore operations. The combined company will be led by Cleveland-Cliffs Chairman, President and CEO Lourenco Goncalves. “This is a new era for Cleveland-Cliffs as a producer of differentiated, high quality iron ore, metallics and steel in […]
When the media began reporting on the COVID-19 (coronavirus) a few weeks back, Majestic Steel sprang into action. This morning Steel Market Update spoke with Todd Leebow, CEO of Majestic Steel in Cleveland, Ohio, about how his company is dealing with the risks associated with the virus. As soon as the risk of the virus […]
EVRAZ North America was hit by a cyberattack on March 4 that disrupted information technology systems at facilities in the U.S. and Canada, impacting production. An EVRAZ spokesperson said that there was “no indication of any breach of confidential or personal customer or employee information,” in the ransomware attack. Patrick Waldron, a spokesperson for EVRAZ […]
“Beyond seasonally subdued,” is how Ryerson Holding CEO Eddie Lehner described demand in the fourth quarter of 2019. Ryerson shipped 541,000 tons last quarter, down 6.2 percent year-over-year and 9.5 percent lower than in the third quarter. Revenue decreased 17.1 percent to $961.5 million compared to Q4 2018 and net income was $26.4 million. Average […]
AK Steel could be in danger of mill closures, said soon-to-be CEO Lourenco Goncalves, if stronger protection is not provided against electrical steel imports. In a warning to members of the Congressional Steel Caucus, Goncalves said the AK Steel mills in Butler, Pa., and Zanesville, Ohio, are unprofitable because of a loophole in the Section […]
ArcelorMittal has big plans for AM/NS Calvert. Lakshmi Mittal, chairman of ArcelorMittal, hinted at a multi-billion dollar investment in Alabama during a press conference with President Donald Trump in India last week. Mittal thanked Trump for his involvement in the U.S. steel industry, calling the Section 232 tariffs a “big lesson for the rest of […]
Nucor-JFE Steel Mexico began production at its continuous galvanizing line in Silao, Guanajuato, this week. The facility will produce hot-dip galvanized sheet steel for the automotive market. With an annual production capacity of 400,000 tons, Nucor-JFE Steel can produce sheet thickness from 0.4 mm to 2.6 mm and widths of 800 mm to 1,850 mm. […]
Steel Dynamics has agreed to acquire 100 percent of the equity interest of ferrous and nonferrous scrap metal recycler Zimmer, S.A. de C.V. The Monterrey, Mexico, operations will support raw material procurement for Steel Dynamics’ new Texas flat rolled mill. Zimmer operations consist of six scrap processing facilities located near scrap-rich industrial areas in Central […]
NLMK USA has filed a complaint with the U.S. Court of International Trade alleging that NLMK’s requests for steel slab exclusions from Section 232 of the Trade Expansion Act have been wrongfully denied. The Indiana and Pennsylvania mills use imported steel slab to process into finished products. The 250-255 mm thick slab (nominally “10 inch”) […]
U.S. Steel is now 100 percent owner of USS-POSCO Industries as of Feb. 29, 2020. The purchase of the remaining shares of the company from its Korean partner represents the best opportunity for UPI to continue operating effectively and serve its customers, said U.S. Steel in a press release. UPI is headquartered in Pittsburg, Calif., […]
Canadian pipe and tube company Nova Steel is returning to the U.S. with a $70 million investment in Delta, Ohio. Nova plans to construct two new tube mills in northwest Ohio in proximity to North Star BlueScope. The 250,000-square-foot facility will produce hollow structural sections and standard pipe. “We are very excited to be back […]
North Star BlueScope reported weaker earnings in the first half of FY 2020 due to softer prices and margin spreads and normal seasonality. Sales revenue of $592 million was down 32 percent from the first half of 2019. Weaker hot rolled coil prices were partly offset by lower raw material costs. Shipments for the half […]
A fire at ArcelorMittal Indiana Harbor East on Friday resulted in the evacuation of workers from the hot strip mill. An ArcelorMittal spokesperson said the fire broke out at the 80-inch HSM #3 Coiler late Friday afternoon, Feb. 21. There were no injuries or explosions as a result of the fire. “The two other coilers […]
Olympic Steel missed its mark during a challenging year. The company reported net income of $3.9 million for 2019, down from $33.8 million in 2018. Net sales fell 8.3 percent year-over-year to $1.6 billion. Fourth-quarter sales slid 29 percent from a year ago to $320 million. The company posted a net loss of $890,000 in […]
Reliance Steel & Aluminum announced a slew of records for its performance in 2019 and an increase in net income for the fourth quarter of 2019. “We challenged ourselves to drive continuous improvements in our business in 2019 and we are extremely pleased with the outcome of our performance,” said President and CEO Jim Hoffman. […]
“Transformational” is what Cleveland-Cliffs CEO Lourenco Goncalves called the acquisition of AK Steel in remarks during the Q4 2019 earnings call Thursday. “With the acquisition of AK Steel, Cleveland-Cliffs becomes the most relevant supplier of steel to the automotive industry in the United States, fully integrated from iron ore in the ground to auto parts […]
Canadian steel producer Stelco Holdings cited challenging market conditions and an “unprecedented” drop in steel prices for its fourth-quarter loss. Stelco reported a net loss of $27 million for the quarter on sales of $435 million, down from $648 millon in the prior-year quarter, due to lower steel prices and shipping volumes. Full year net […]