Steel Dynamics reported adjusted second quarter earnings guidance in the range of $0.20 to $0.24 per share, an improvement over $0.17 per share in first quarter. Not included in the earnings guidance is $29 million of expenses associated with the idling of the Minnesota operations and $9 million in reduced earnings due to a planned […]
Global steel production in 12 months through May totaled 1.672 billion metric tonnes with a capacity of 2.2 billion tonnes according to the World Steel Association. Capacity utilization on a three month moving average, (3MMA) basis was 72.2 percent unchanged from April. China accounted for 50.2 percent of global production in May. Asia as a […]
Written by: John Packard, Publisher, Steel Market Update Last Thursday evening Ray Culley (SMU) and I attended the Chicago regional meeting of the Association of Steel Distributors (ASD) at the Hotel Sofitel Water Tower in downtown Chicago. The speaker for the evening was Chicago based trade attorney Larry Friedman. His practice concentrates on the representation […]
In its second quarter 2015 earnings guidance, AK Steel said it expects to report a net loss of $0.37 to $0.42 per diluted share of common stock. The company attributed negative results to low steel prices caused in part by high levels of unfairly traded imports. Shipments of 1.8 million were up 3 percent from […]
Steel Market Update has been asked if the domestic steel mills have made any moves to restart idled blast furnaces in order to increase production due to dumping suits, price increases and the anticipated stronger order book. People also want to know if ArcelorMittal and US Steel are building slab inventories in order to have […]
Nucor’s second quarter guidance indicates earnings in the range of $0.20 to $0.25 per diluted share, below analyst consensus of $0.30 per share for the quarter. Earnings decreased from Q2 2014 at $0.46 per share and are comparable to $0.21 in Q1 2015. Overall operating performance is down from Q1. Prices are beginning to stabilize, […]
Based on Steel Market Update (SMU) analysis of the recently released MSCI service center inventory and shipment data, total service center carbon steel shipments decreased by 178,700 tons in May to 3.126 million tons. Shipping days at 20, were two less than in April. On a tons per day basis (t/d) shipments increased from 150,200 […]
The USW negotiating committee for workers at ArcelorMittal USA met in Pittsburgh this week to begin working on new contracts. The current three year contracts will expire at 11:59 pm. EST, September 1, 2015. The master Basic Labor Contract covers employees at 12 ArcelorMittal USA facilities; three additional sites have contracts that will expire concurrent […]
The Metal Service Center Institute (MSCI) released distributor shipment and inventories for the month of May on Monday of this week. In the MSCI press release they reported, “U.S. shipments of steel products decreased substantially in May compared to a year ago….” They went on to report, “In May 2015, U.S. service center steel shipments […]
The $1.3 billion Big River Steel mill, in Osceola, Ark., is beginning to take shape. The site excavation, totaling 1,178,000 cubic yard, is nearly 100 percent complete, said Mark Bula, Chief Commercial Office in a progress report to Steel Market Update. About 26 percent of the 235,000 cubic yards of concrete that will be needed […]
Steel Market Update conducted our flat rolled steel analysis (survey) last week. We began the process on Monday (June 1st) and approximately 90 percent of the responses were made prior to the filing of the anti-dumping and countervailing duty suit on corrosion-resistant steel (galvanized, Galvalume, galvanneal, aluminized, etc.). We invited approximately 600 companies to participate […]
US Steel has called 149 employees back to work at Fairfield Works. Currently just 76 workers are on layoff from the original 225 workers at the end of May. US Steel is in the process of restarting the Fairfield Works blast furnace. US Steel spokesperson Sarah Casella told the Birmingham Business Journal that the Jan […]
Phase 1 in the sale of US Steel Canada has been completed. Thirty-nine potential bidders for the USSC assets have signed non disclosure agreements, according to the latest report by court monitor, Alex Morrison. Multiple letters of intent were received indicating interest in: a. acquiring on or both of Lake Erie Works and Hamilton […]
Steel Market Update will have a number of articles in today’s issue of our newsletter about the corrosion resistant trade cases filed yesterday by six U.S. steel mills. We will discuss what has to be proved, the timetable that a case goes through at both the Department of Commerce (DOC) and the International Trade Commission […]
Steel Market Update has written numerous articles about the corrosion resistant trade case filed by six domestic steel mills against five foreign countries. The petition which called for anti-dumping and countervailing duty action will now go through the proper channels at the US Department of Commerce (anti-dumping) and the International Trade Commission (countervailing duty). There […]
A US Steel spokesperson reports that the Fairfield Works blast furnace is in the process of restarting. Notices were given last week to employees and customers that a blast furnace at Granite City Works will continue in operation. Analysts at Key Banc Capital Markets had the following comments on US Steel. “Fairfield is being restarted […]
The world’s steel producers managed to pump out 1.665 billion metric tons of steel (1.84 billion net tons) during 2014 according to the World Steel Association (WSA) which released their 2014 data book earlier today. According to the WSA, the United States was the third largest steel producing country behind China and Japan. This is […]
AK Steel announced plans to introduce one of the first commercially available Next-Generation Advanced High Strength Steels. The new technology improves steel formability at higher tensile strength levels, perfect for customers seeking lightweighting for automotive manufacturing. The Hot Dip Galvanizing Line (HDGL) at AK Steel’s Dearborn works will be modified to produce both coated and […]
US Steel has purchased the remaining AK Steel shares of its joint interest in Double Eagle Steel Coating Company. AK Steel acquired 50 percent of Double Eagle when it acquired the Severstal Dearborn operations in 2014. With a payment of $25.2 million to AK Steel, US Steel now owns the 700,000 ton electrolytic-galvanizing line. The […]
ArcelorMittal Dofasco has been fined CAN $130,000 (US $104,379) after pleading guilty to two separate safety violations. On September 6, 2012, four workers were a changing a tuyere (a pipe/nozzle that blows air into the furnace) and blow pipe assembly on the #3 Blast Furnace. One of the workers fell off a tow motor used […]
The Board of Directors at AK Steel has approved the following executive promotions and organizational changes, effective May 29, 2015. Roger K. Newport has been promoted to Executive Vice President, Finance and Chief Financial Officer. Mr. Newport was previously Senior Vice President, Finance and Chief Financial Officer. He will continue to be responsible for accounting, […]
US Steel has decided not to close down the Granite City mill this month. Instead, 80 workers will be laid off and one blast furnace will be kept in operation. The second furnace will be offline while a new caster is installed. The previously announced temporary closure would have affected 2,080 employees at the plant. […]
PRO-TEC Coating Company, a 50/50 joint venture between United States Steel Corporation and Kobe Steel, Ltd., of Japan, announced today that its president, Bryan Vaughn, will retire effective June 1, 2015 after 34 years of service in the steel industry. Brent Rosebrook, currently vice president of finance and administration at PRO-TEC, has been named acting […]
AM/NS Calvert will be producing Ultra High Tensile Strength Cold-rolled and Coated steel sheets with high formability by the end of 2016. Nippon Steel & Sumitomo Metal Corporation (NSSMC), which is a joint partner with ArcelorMittal in the Calvert operations, says the materials of up to 1.2 gigpascals (GPa) tensile strength will be used for […]
Essar Steel Algoma is asking for support from the City of Sault Ste Marie in challenging a request by the Independent Contractors and Business Association (ICBA) and the province of British Columbia for ‘regional exemption’ of anti-dumping and countervailing duties on rebar imports. “Although we are not a rebar producer, it is our view that […]
Steel Dynamics announced this morning that it will idle its Minnesota ironmaking operations in Chisholm and Hoyt Lakes, Minn., effective immediately. The operations will be idled initially for 24 months due to the “continued significant decline in pig iron pricing, which has resulted in the cost of iron nugget production being meaningfully higher than product […]
There are going to be two main themes which SMU and other steel periodicals will be writing about over the coming months (between now and our Steel Summit Conference at the beginning of September). The two themes are: anti-dumping suits on light flat rolled products and union contract negotiations between U.S. Steel and ArcelorMittal USA […]
US Steel can keep its secrets. Superior Court Justice Herman Wilton-Siegel ruled on Wednesday that the details of the agreement between US Steel and the government of Canada cannot be released by the court—only by the Ministry of Industry. And, so far, neither the Ministry nor US Steel is willing to reveal the contents of […]
Severstal says the DOC should not terminate the suspension agreement on cut-to-length steel plate from Russia. In a communication to the U.S. Secretary of Commerce, the Russian steel producer said there is no evidence that Russian steel imports of CTL are injurious to the U.S. domestic steel market. In its letter Severstal writes, “Petitioner’s request […]
Steel Market Update is a member of an association connected to the construction industry called HARDI. HARDI stands for Heating, Air-conditioning & Refrigeration Distributors International. HARDI and The Institute for Trend Research (ITR), an economic forecasting company, work together to gather economic data to provide a forecast to the HARDI members located in the United […]