The trend for lower shipments and inventories out of the steel distributors in the United States continued during the month of September, according to just released Metal Service Center Institute (MSCI) data. The MSCI reported total steel shipments declined 6.6 percent compared to one year ago while inventories dropped 17.2 percent YOY. September MSCI carbon […]
Canadian shipments for all steel products in the month of September were 370,800 net tons, an increase of 1.6 percent from the month before but a decrease of 8.5 percent from September 2015. Inventories at the end of the month stood at 1,116,500 tons, down 2.8 percent from last month and down 15.6 percent from […]
September was another month in which shipments by service centers failed to live up to long term expectations. Carbon steel shipments decreased by 317,800 tons, mostly as a result of the number of shipping days declining from 23 in August to 21 in September. However tons per day shipments also declined being down from 139.7 […]
NLMK USA produced 100,000 tonnes of crude steel and 420,000 tonnes of finished steel in third quarter 2016. Sales volume decreased to 440,000 tonnes (485,000 net tons) from 522,000 tonnes (575,000 net tons) in second quarter, down 15 percent quarter-over-quarter and down 10 percent year-over-year. NLMK attributed the decline in sales to weaker client demand […]
US Steel Canada court monitor Alex Morrison reported sales were good in August, resulting in revenue of CAD $144.6 million. EBITDA increased by $30.7 million from July. Shipments were up 19.7 percent year-over-year to 192,734 tons. The company has been successful in replacing sales to automotive customers that were lost when US Steel cut ties […]
China’s Hebei province is cracking down on steel operations in the region by imposing “special emission restrictions.” Mills in the province have until September 1, 2017 to comply with new air pollution standards for pollution. Failure to do so could result in fines, mandated reduction in output, or total closure. In a notice issued on […]
John Ferriola, Chairman, CEO and President of Nucor Corp., has been elected Chairman of the World Steel Association (worldsteel). The elections for officers and the 2016 Executive Committee were held at worldsteel’s 50th Annual Conference in Dubai, UAE. Officers for worldsteel will serve for a period of one year. The new officers for 2016/2017 are: […]
China is not likely to meet its steel capacity reduction target of 45 million tons this year. According to data from the World Steel Association, steel output in China has fallen only 0.1 percent from January to August with production at 536 million tonnes. Steel production rose 3 percent year-over-year in August and increased 2.6 […]
Essar Steel Algoma is approaching the end of one year of protection under the Canada’s Companies Creditors Arrangement Act. The company entered protection on November 9, 2015. The latest court monitor report by Brian Denega, senior vice principle of Ernst & Young, shows the company maintaining its production and stocking up on iron ore for […]
Nucor announced Tuesday that it has restructured its natural gas supply agreements to improve access to a long-term supply of natural gas. Nucor purchased 49 percent of Encana’s leasehold interest of 54,000 acres in the South Piceance Basin. In addition, Nucor and Encana have terminated the two Carry and Earning drilling agreements from 2010 and […]
ArcelorMittal USA told a District court last week that the Cleveland steel mill will suffer “catastrophic harm” if the Cuyahoga River shipping channel is not dredged this fall. ArcelorMittal told a U.S. district court that the sediment build-up in the shipping channel has caused cargo ships to lighten their loads resulting in a critically low […]
A welder at US Steel Gary Works died on Friday while working in the U.S. Steel Slab Storage Yard. Details about the fatality are still unclear and the incident is under investigation. US Steel issued the following statement: “On the evening of Friday, September 30, there was an incident at U. S. Steel’s Gary Works […]
Ryerson Holding Corp., a leading distributor and processor of metals, provided guidance for its third quarter ending September 30, 2016. The Company expects third quarter 2016 net income in the range of $8 million to $12 million and adjusted EBITDA, excluding LIFO in the range of $46 million to $50 million. In Q3 2015, Ryerson […]
After running on provisional licenses for the past six years, Thyssenkrupp’s CSA steel mill in Brazil has finally been granted a definitive operating license by the state environment authority. Companhia Siderúrgica do Atlantico (CSA) has faced environmental problems ever since it began production. Numerous fines and shutdowns were ordered by the court in relation to […]
Essar Steel Algoma’s court monitor, Ernst & Young, has received authorization to investigate a complicated deal that the company made with the Port of Algoma two years ago. The inquiry is the result of a request by the debtor-in-possession lenders (DIP) for Essar Steel Algoma. In 2014, Essar Steel Algoma leased its dock to the […]
Worthington Industries delivered record earnings in the first quarter of FY 2017 (ending August 31, 2016). Net sales totaled $737.5 million for net earnings of $65.6 million. Gross margin increased $34.3 million year-over-year to $147.3 million primarily due to inventory holding gains of $17 million in Steel Processing which were partly offset by lower volume […]
The Chinese steel industry is often in the news for contributing to severe air pollution but now a Taiwanese-owned steel mill in Vietnam is accused of polluting the ocean and causing a mass fish death. Toxic discharge from Formosa Ha Tinh Steel Corp, a subsidiary of Taiwan’s Formosa Plastics, is responsible for killing an estimated […]
SAULT STE. MARIE – Essar Steel Algoma Inc. (“Essar Steel Algoma” or the “Company”) obtained an Order today from the Ontario Superior Court of Justice extending the stay of proceedings under the Companies’ Creditors Arrangement Act (CCAA) to January 31, 2017. The Court further approved an amendment and extension to the existing Debtor-in-Possession financing facility […]
US Steel Canada has moved closer to a resolution of creditor protection proceedings and a sale of the company. The government of Ontario and Bedrock Industries announced they have signed a Memorandum of Understanding to facilitate the restructuring of US Steel Canada. The MOU terms are confidential but Ontario says it has agreed to support […]
Earlier today Steel Market Update (SMU) participated in the monthly steel conference call hosted by HARDI. The call is for those wholesalers who supply galvanized sheet and coil to the HVAC mechanical contractors. During the course of the discussion it became clear that the wholesalers are quite concerned about the drop in galvanized spot prices […]
Baosteel and Wuhan Iron and Steel (WISCO), the fifth and eleventh largest steel manufacturers in the world, are merging to form a new entity, China Baowu Iron and Steel Group. The combination of assets will give the new company an estimated 60 million tons of capacity, placing it as second largest producer behind ArcelorMittal. Both […]
It’s official! On Sunday we reported rumored plans of an expansion at Nucor Steel Arkansas and this afternoon the company made a formal announcement. Nucor’s press release follows: Nucor Corp. announced that it is adding an additional cold mill at its Nucor Steel Arkansas division. The specialty cold mill complex will expand Nucor’s capability to […]
Steel Dynamics expects stronger profits in third quarter due to meaningful metal spread expansion. In the company’s third quarter guidance, SDI said higher steel pricing in Q3 will more than offset higher scrap prices, however, improved margins will be impacted by lower steel shipments across the product platform. Higher earnings for third quarter are driven […]
The week ending September 17, 2016 domestic raw steel production was 1,632,000 net tons while the capability utilization rate was 69.8 percent. Production was 1,687,000 net tons in the week ending September 17, 2015 while the capability utilization then was 70.5 percent. The current week production represents a 3.3 percent decrease from the same period […]
Steel service centers in the United States shipped a total of 3,378,700 tons of steel (all products) during the month of August, according to data just released by the Metal Service Center Institute (MSCI). The daily shipment rate improved by 1,000 tons per day during August compared to July as the distributors shipped 146,900 tons […]
Canadian steel service centers shipped a total of 364,800 tons of steel products during the month of August. Compared to the previous year shipments were 6.1 percent lower and the 364,800 ton level was the second lowest shipping month this calendar year (July was the lowest at 318,700 tons). Year to date the Canadian distributors […]
Nucor Corporation announced today that it has agreed to acquire Independence Tube Corporation (ITC), a leading independent manufacturer of hollow structural section (HSS) steel tubing, for $435 million, or approximately 6x average EBITDA over the 2013-2015 period. “Independence Tube is a natural fit with Nucor. Their business model is similar to ours with extremely efficient […]
Retirees of US Steel Canada are appealing the decision by the Ontario Superior Court to uphold the suspension of benefits to former workers at Hamilton and Lake Erie Works. A new report by the Monitor assigned to the CCAA proceedings shows US Steel Canada has more cash available than projected–$160 million at the end of […]
The following analysis of the Metal Service Center Institute (MSCI) shipping and inventories data is what is normally shared with our Premium level members. Carbon steel shipments increased by 436,300 tons in August and almost reversed the decline of 443,300 in July. These gyrations are mostly driven by the number of shipping days in the […]
SMU attended the regional meeting of the Associated Steel Distributors (ASD) on Sept. 15 in Cleveland, Ohio. The meeting was well attended for a presentation by Cliffs Natural Resources CEO Lourenco Goncalves. Mr. Goncalves spoke about the environment, trade and how conditions in the iron ore industry impact global steel supply, or, in recent years, […]