Maintenance and a flooding incident have forced U.S. Steel to juggle producton on the furnaces at its Gary Works mill. Two of the three furnaces that had to be taken offline when a water pipe burst Nov. 27 are now back in operation. Blast furnaces #14 and #6 are now fully operational and #4 is […]
By CRU Senior Analyst Ryan Smith and Senior Consultant Sarah Macnaughton, from CRU’s Crude Steel Market Outlook Climate change is moving up the political agenda and putting increasing pressure on heavy industry to reduce their CO2 emissions. As the largest producer of global industrial CO2 emissions, the steel sector has a clear role to play in meeting […]
Cleveland-Cliffs and AK Steel Holdings surprised the market this morning, announcing the merger of their two companies. Under a definitive merger agreement, Cleveland-Cliffs will acquire all the issued and outstanding stock of AK Steel at $3.35 per share or $1.1 billion. Cliffs Chairman and CEO Lourenco Goncalves will lead the expanded organization and AK Steel […]
Service has been restored to the largest of the blast furnaces, and a second furnace will be back online shortly, following a water pipe break Nov. 27 that forced U.S. Steel to shut down all three operating furnaces at its Gary Works mill. In an update on Monday, a spokesperson said the third furnace is […]
Early reviews of Cleveland-Cliffs’ decision to acquire AK Steel show mixed opinions among the market observers polled by Steel Market Update. On the surface, the marriage of the producer of value-added iron ore with the long-time steelmaker, its largest customer, seems a natural fit. But merging the two, very different companies may not prove so […]
The following article is written by John Packard, President & CEO, Steel Market Update On Sunday, SMU published in my Final Thoughts the following: “There has also been discussion about U.S. Steel in the marketplace as to whether the mill has decided to concentrate on auto, appliance, energy and electrical markets and perhaps move away […]
Stelco’s strategy to get into the merchant pig iron (MPI) market is getting high marks from the experts. As one of the Canadian steelmaker’s strategic growth initiatives, it plans to construct a new pig iron making facility at its Lake Erie Works to coincide with a blast furnace reline scheduled for Q2 2020. Stelco claims […]
The mills may have announced two increases in flat rolled steel prices in the past month, but you couldn’t tell from comments by members of the Heating, Air Conditioning & Refrigeration Distributors International. The distributors of galvanized steel to the HVAC sector report little impact on prices so far, though demand remains healthy despite some […]
Favorable winds are blowing for Nucor Steel in Missouri. The company will start production at its new rebar micro-mill in Sedalia, Mo., by the end of December powered by clean energy provided by Evergy Inc. Evergy has plans to build a windfarm at the Sedalia site that will offset 100 percent of the energy used […]
The first U.S.-flagged Great Lakes bulk carrier to be built in more than 35 years will be made from steel supplied by ArcelorMittal Burns Harbor. The carrier was commissioned by Interlake Steamship Company and will be built by Fincantieri Bay Shipbuilding. A ceremony celebrating the first cut of steel for the new vessel was held at […]
AK Steel Ashland rolled its final coil on Monday, Nov. 11, at 10:14 a.m. The Kentucky plant is expected to close its doors for good on Dec. 31. “Everyone was walking the line, and as we walked the line, everyone watched it,” said Brian Boggs, an electronics technician at the mill, in a comment to […]
Canadian integrated steelmaker Stelco managed to improve on its revenues and operating income from the second to the third quarter, but still reported an $11 million loss in Q3 adjusted net income. The company plans to expand its product mix by adding pig iron production and shipments in 2020. Third-quarter revenue of CAD $475 million […]
U.S. Steel announced on Wednesday a new target for reducing greenhouse gas emissions intensity. As part of its “best of both” strategy, U.S. Steel said it will reduce its global greenhouse gas emissions intensity 20 percent by 2030, based on 2018 baseline levels. Emissions intensity is measured by the rate of carbon dioxide equivalents emitted […]
Flack Global Metals says it will move forward on plans to build a new coil coating and downstream processing facility adjacent to Big River Steel in Osceola, Ark. The new facility will cost approximately $150 million and create more than 150 new jobs. This investment, if completed, will add production capability to the Big River […]
Allegheny Technologies Inc. and NLMK USA have signed a one-year agreement to extend and expand carbon steel hot rolling conversion services for NLMK at ATI’s Hot-Rolling and Processing Facility (HRPF) in Brackenridge, Pa., through December 2020. ATI expects 2020 volumes to increase significantly compared to 2019 levels and provide guaranteed volumes and fixed fee-per-ton revenues, […]
ArcelorMittal USA will shut down its blast furnace #3 at Indiana Harbor West. The furnace has reached the end of its current operational life and will be taken down in a safe and orderly fashion, said a spokesperson for the company. The furnace could be restarted in the future “if customer demand merits the necessary […]
U.S. Steel initiated layoffs for some of its non-union staff on Friday, citing challenging market conditions requiring a leaner and more efficient organization. The layoffs are related to restructuring plans that were announced in early October. “While market headwinds persist, we continue to focus on what we can control, including re-scoping our asset revitalization investments […]
Big River Steel announced it will be the long-term provider of high-quality steel products to Array Technologies, an industry-leading solar tracking manufacturer. Array was committed to finding a source of steel products that would allow the company to maintain its commitment to providing reliable renewable energy not only in their product design but also through […]
Olympic Steel reported third-quarter net sales of $384 million, a 16 percent decline from third-quarter 2018 due to lower shipping volumes and pricing in the carbon flat segment. Net income was $591,000 for the quarter, down from $11.6 million in Q3 2018. “Softer global demand, unsettled trade agreements, excess global steel capacity and overall market […]
AK Steel Chief Financial Officer Jaime Vasquez will retire from the company effective Nov. 30, 2019. Christopher Ross, current AK Steel Vice President and Treasurer, has been named interim CFO and Treasurer, effective Nov. 5. “Jaime’s experience and financial focus have served the company well as we forged a new strategic path,” said CEO Roger […]
Olympic Steel announced the appointment of Daniel Harnois to General Manager of Berlin Metals, effective Nov. 1. Harnois will be responsible for driving profitable growth for Berlin Metals and will report directly to Andrew Wolfort, Regional Vice President and General Manager. Berlin Metals is an Olympic Steel company that specializes in tin mill products, stainless […]
United States Steel Corp. reported a net loss of $84 million in the third quarter due to declining steel prices and weaker market conditions—down sharply compared with third-quarter 2018 yet better than analysts’ expectations. The steelmaker earned $291 million in last year’s third-quarter. “The team delivered better than expected results from solid cost performance and […]
ArcelorMittal is withdrawing from a deal to acquire the troubled Italian steel plant Ilva after the government removed legal protection for the company while it brings the mill up to environmental standards. On Monday, AM InvestCo Italy sent a notice to Ilva’s commissioners that it will withdraw from or terminate the agreement. Ruling political party […]
Lower prices for line pipe and less drilling activity in the U.S. and Argentina contributed to declining tubular sales for OCTG producer Tenaris. Net tubular sales for the company totaled $1.8 billion in the third quarter, down 8 percent sequentially and year-over year, on shipments of 796,000 metric tons. Tubular shipments fell 6 percent from […]
AK Steel eked out a net income of $2.8 million in the third quarter, down from $66.8 million in Q2 and $67.2 million in Q3 2018. Included in net income was a $15.3 million mark-to-market loss from iron ore derivatives. Net sales of $1.5 billion fell 12 percent year-over-year and 9 percent from the second […]
Nucor Steel Arkansas opened its new cold mill complex at a ribbon-cutting ceremony on Friday, Oct. 25. The $230 million specialty cold mill will expand Nucor’s capability to produce high strength, high-strength low-alloy and motor lamination steel products for the automotive industry. “As a world leader in steel manufacturing technology, Nucor is particularly focused on […]
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. […]