Essar Steel Algoma is asking that courts in Ontario and Delaware order Cliffs Natural Resources to reinstate shipments of ore that were terminated two months ago. Cliffs canceled its contract with Essar Steel Algoma in October claiming breach of contract and triggering Essar Algoma’s filing for CCAA protection. The steel mill is concerned that it […]
US Steel announced on Monday that it will follow through on its plans to temporarily idle the Granite City Works steelmaking and finishing operations located in Granite City, Ill. In a press release today, the company said the idling is “part of an on-going adjustment of steelmaking operations throughout North America to match customer demand.” […]
On Monday of this week, Steel Market Update conducted an interview with Michael McQuade, CEO for US Steel Canada. The purpose of our interview was to see if USSC will be a viable supplier for 2016 automotive contracts. Many times articles begin by our customers asking what might be construed as a simple question that […]
Manufacturing companies reported their service center suppliers dropping spot steel prices this past week. Ninety percent of the manufacturing respondents responding to last week’s SMU flat rolled steel market questionnaire reported service centers as dropping spot pricing. This continues a growing trend for distributors to dump inventory at reduced margins (or at no margins at […]
The USW and ArcelorMittal will take a break from contract talks over the Thanksgiving holiday and resume on November 29. The USW reminded the membership that the terms and conditions of the previous agreement remain in effect as negotiations continue. Said the USW in a membership update, “As we have reported in previous updates and […]
New Star Metals is changing its name to Material Sciences Corporation. New Star acquired MSC in March 2014 which remained in operation under the MSC brand. “We have an aggressive growth plan and believe we should go to market as one team – Material Sciences Corporation,” said CEO Patrick Murley, CEO of New Star Metals […]
Shipments of all steel products out of the U.S. based steel service centers totaled 3,363,900 tons, according to the Metal Service Center Institute (MSCI) in data released on Monday. Total tonnage was up 3.2 percent compared to September but was down 14 percent year-over-year. The daily shipment rate was 152,900 tons which was 1.5 percent […]
The HARDI wholesalers held their monthly galvanized steel conference call earlier today. During the call the wholesalers provided insights into business conditions affecting the companies and discussed the status of the flat rolled steel markets. HARDI wholesalers supply galvanized sheet and coil steels to the mechanical contractors associated with residential and commercial construction in North […]
Canadian shipments for all steel products in the month of October were 422,400 net tons, a decrease of 6.5 percent from the month before and decrease of 18.3 percent from October 2014. Inventories at the end of the month stood at 1,355,300 tons, down 7.3 percent from last month and down 12.3 percent from the […]
Based on Steel Market Update (SMU) analysis of the recently released MSCI service center inventory and shipment data, total service center carbon steel shipments increased by 104,700 tons in October to 3.201 million tons. Shipping days at 22, were up by one from September. On a tons per day basis (t/d) shipments decreased from 147,900 […]
Ryerson Holding Corp, a distributor and processor of metals, reported revenue of $790 million in third quarter, down 6 percent from second quarter and down 16.7 percent from Q3 2014. Net income was $6.7 million compared to income of $15.8 million in Q2 and a net loss of $34.7 million in Q3 2014 which included […]
USW/ArcelorMittal talks are continuing this week with meetings scheduled through Friday, November 20. Healthcare benefits will be the focus of discussions. The USW reminded members that the extension of the existing contract with the US Steel remains in force and that the company remains bound by the basic labor agreement, including grievance procedures. Retirees received […]
USW/ArcelorMittal talks are continuing this week with meetings scheduled through Friday, November 20. Healthcare benefits will be the focus of discussions. The USW reminded members that the extension of the existing contract with the US Steel remains in force and that the company remains bound by the basic labor agreement, including grievance procedures. Retirees received […]
US Steel Canada presented its arguments against revealing the confidential settlement between USSC, US Steel and the government of Canada. In a response filed with the Court of Appeal for Ontario on November 11, 2015, US Steel Canada asked that the appeal by the USW, USSC employees and pensioners, and the City of Hamilton be […]
Essar Steel Algoma announced Monday that it has entered Companies Creditors Arrangement Act (CCAA) protection. It is the third time Algoma will seek restructuring under CCAA—the first time in 1991 and again in 2001. In November 2014 Algoma completed a recapitalization and refinancing plan supported by Essar Global Fund Ltd. Essar Algoma has struggled to […]
One of the questions Steel Market Update received from a service center early this week was, “WHEN” will the bottom of the pricing cycle be achieved (the emphasis provided by the person asking the question). Stress levels continue to build at flat rolled steel distributors as evidenced by the percentage of our service center survey […]
The lockout of USW employees at Allegheny Technologies is now in its 13th week. The USW has registered 18 complaints against ATI to the National Labor Relations Board charging unfair labor practices. The charges include, among others, refusal to bargain, coercive statements, repudiation/modification of contract, and lockout. To find out more about the process, SMU […]
ArcelorMittal USA has introduced a new Consumer Driven Health Plan (CDHP) for non-represented salaried employees, effective January 1, 2016. Employee contributions for single coverage under CDHP will average $65 per month and family coverage will be $198 per month. ArcelorMittal says the plan is still highly competitive with other plans in the industry. Employees will […]
Steel Market Update saw a note from Bank of America Merrill Lynch metals and mining research group out of the UK regarding takeaways from their recent trip to China. In the note the group was skeptical of the push by the Chinese central government to remove another 80 million metric tons (88 million net tons) […]
Olympic Steel reported a net loss of $600,000 for third quarter but managed to expand gross margin 21.2 percent, compared to Q3 2104, despite pressure on pricing and volume. Olympic lowered operating expenses by almost $20 million so far in 2015 as well as lowering debt by a total of $60 million. Sales volume decreased […]
ArcelorMittal reported a $700 million loss for third quarter which it blamed on falling prices and dumping of steel by China. Third quarter EBITDA was $1.35 billion. “Operating conditions have deteriorated in recent months, both in terms of the international steel price environment which has been driven by unsustainably low export prices from China and […]
Steel Market Update asked one of our Asian iron ore and steel trading sources to comment on the recent decline in iron ore prices which recently broke below $50/dmt on 62% Fe fines in China. We also asked for a comment about the recent spat of trade suits and the Chinese mills not cooperating with […]
US Steel continues to utilize its Carnegie Way initiative to find cost savings throughout the company to offset the challenges of unfairly traded imports, lower order rates, and falling steel prices. In third quarter 750 projects were completed, raising the total number of projects contributing savings benefits to the company this year to almost 2000. […]
Recent media reports indicate that Essar Steel Algoma may be heading for another return to insolvency as it struggles to meet its debts. According to media reports, the company has engaged a law firm and restructuring specialist to advise it and may file for insolvency by the end of the month. Although Essar Steel Algoma […]
The USW has filed 18 unfair labor practices against Allegheny Technologies with the National Labor Relations Board. The first set of charges was filed in September in NLRB Region 6, Pittsburgh. Additional charges have been filed with the NLRB in Cleveland, OH, Hartford, CT, and Portland, OR. “These charges cover numerous topics involving ATI’s conduct […]
The USW has filed 18 unfair labor practices against Allegheny Technologies with the National Labor Relations Board. The first set of charges was filed in September in NLRB Region 6, Pittsburgh. Additional charges have been filed with the NLRB in Cleveland, OH, Hartford, CT, and Portland, OR. “These charges cover numerous topics involving ATI’s conduct […]
US Steel Corp. reported a net loss of $173 million for third quarter 2015. Results included a $53 million loss due to shutdown of the blast furnace and associated operations at Fairfield Works. It also included a charge of $10 million for pension obligations to US Steel Canada and $7 million in restructuring costs. In […]
Altos Hornos de Mexico (AHMSA) reported a net loss of 1.28 billion pesos ($77.8 million) for third quarter 2015, almost double its loss from the same period in 2014. Revenue dropped to 10.2 billion pesos ($619 million) for the quarter. Steel production fell 1.16 percent to 922,138 tonnes. Production of thermal coal increased 5.31 percent […]
According to a media reports, Essar Steel Algoma is in talks with senior lenders regarding entering insolvency. Bloomberg sources say a court filing is possible within the next month. Reuters said the company has hired law firm Weil Gotshal & Manges LLP and restructuring specialists Evercore Partners Inc. to advise it. Canadian steelmaker, Essar Steel […]
Big River Steel and Nucor were back in court on Wednesday arguing over Nucor’s claim that legal requirements were not followed in granting an air permit to Big River Steel. The Arkansas Court of Appeals will decide if the permit was properly issued. “We’re dealing with a very motivated opponent, Nucor, who wants to stop […]