A plan to sell US Steel Canada plants Hamilton and Lake Erie Works will be sent for court approval March 30. The prepared court documents outline a plan for “soliciting interest in and opportunities for a sale, restructuring or recapitalization of the assets and business operations” of US Steel Canada. The two-step sale process involves […]
Ryerson Holding Company, a leading distributor and processor of metals, announced a net loss of $25.7 million for 2014. Revenues increased 4.7 percent last year to $3.6 billion, but $32.7 million in IPO-related expenses and costs associated with partial redemption of Senior Notes negatively impacted earnings. “We showed year-over-year improvement in our key metrics for […]
The United Steel Workers will be negotiating new contracts with U.S. Steel and ArcelorMittal later this year. The current three-year contracts expire August 31, 2015. Discussions start a few months before and serious bargaining begins about a month before contract expiration, said USW Communications Director Wayne Ranick. Contract negotiations are frequently contentious battles as evidenced […]
US Steel has cut 83 more workers at Gary Works as it adjusts production to respond to market fluctuations. The latest cuts are probationary employees at the Gary Works steel complex who have worked for the company six months or less. US Steel spokesperson Sarah Casella said the layoffs are permanent. “The company routinely adjusts […]
ArcelorMittal is preparing to idle the No 3 blast furnace at Indiana Harbor for scheduled stove repair on March 16. The steel making outage is expected to last until late second quarter 2015. A statement received from ArcelorMittal read as follows: “ArcelorMittal Indiana Harbor will move forward with a previously scheduled maintenance outage to conduct […]
The domestic steel mills are resorting to adjustments in supply as a weapon against the chronic short lead times which are helping to push flat rolled steel prices lower and lower. The heavy lifting is being done by the integrated steel mills, especially by U.S. Steel which has taken three blast furnaces down over the […]
US Steel operations at Minnesota Ore Operations-Keetac will be temporarily idled as of May 13. The company said the idling is due to “current inventory levels and adjustment of its steelmaking operations throughout North America to match customer demand.” US Steel cited global influences in the market, including unfairly traded imports, as contributors to a […]
M&M Manufacturing, a portfolio company of TGF Management, has been acquired by MiTek Industries, Inc., a subsidiary of Berkshire Hathaway. The transaction, announced by Houlihan Lokey, closed on February 24, 2015. M&M Manufacturing, headquartered in Fort Worth, Texas, is the leading diversified manufacturer of sheet metal building products in the Southwest, primarily servicing the air […]
SMU had the opportunity to attend the Association of Steel Distributors (ASD) meeting in Pittsburgh on March 5. The meeting was held at the delightfully decorated Hotel Monaco in downtown Pittsburgh. ASD president Brian Robbins welcomed the younger than usual attendees to the ASD meeting and invited them to become part of the Future Leaders […]
Esmark Europe has filed a lawsuit in U.S. District Court against Slovakian businessman Peter Kamaras for attempting to undermine Esmark Europe’s bid for Zelezara Smederevo Steel Works. Esmark asserts that Kasmaras aligned himself as an investor and agent with Esmark Europe to gain inside information while simultaneously undermining Esmarks’ bid to privatize Zelezara Smederevo for […]
Kloeckner Metals Corp, the Americas segment of Klockner & Co., posted EBITDA of €19 million ($21 million) for fourth quarter 2014, as compared to €2 million ($2.2 million) year over year. Sales for fourth quarter were €604 million, down from third quarter €634 million ($665 million) but up 16.3 percent y/y. Shipments in fourth quarter […]
US Steel told union workers it will permanently shut down coke-making operations at the Gary Works facility in Indiana. The closure will affect 300 employees and take place in mid May. A US Steel spokesperson said, “This strategic decision was made in light of the company’s long-term coke position and the future anticipated steelmaking operations, […]
AM Castle, a global distributor of specialty metal and plastic products, reported a consolidated net loss of $39 million for Q4 and a loss of $134.7 million for the full year 2014. Results for Q4 were negatively impacted by $8.2 million of provisions for inventory reserves due to restructuring consolidation and $2.9 million of other […]
A federal judge on Wednesday dismissed Nucor’s lawsuit against future competitor Big River Steel. U.S. District Judge Leon Holmes said Nucor’s citizen lawsuit is not authorized under the Clean Air Act and the court has no jurisdiction over the case. Nucor argued that Big River steel was violating emission standards by constructing the mill without […]
Olympic Steel reported higher sales volume and demand in fourth quarter 2014, but lower steel prices reduced margins for the quarter and year. Olympic Steel reported consolidated net sales up 12.5 percent for a fourth quarter record of $326.7 million. Full year sales were also a record at $1.4 billion, up 13.7 percent from 2013. […]
U.S. Steel announced the promotion of Colleen M. Darragh to the position of vice president and controller, effective immediately. Darragh will be responsible for the global financial accounting, reporting and analysis functions for the company. Darragh joined U. S. Steel in 2006 as director – external reporting and advanced through a series of increasingly responsible […]
Tenaris announced it will temporarily suspend operations at its welded tubes mill in Conroe, Texas. The shutdown will result in the layoff of approximately 230 employees, effective April 2015. “Record levels of unfairly traded imports of OCTG (oil country tubular goods) from South Korea and the sharp decline in the price of oil and consequential […]
Once a month, HARDI sponsors a galvanized steel conference call with the wholesalers who sell sheet and coil to the HVAC mechanical contractors. Steel Market Update (SMU) has participated in these informative discussions for a number of years and they are very useful in our understanding of the ebb and flow of both pricing and […]
With the reset of iron ore and ferrous scrap pricing there is an extraordinary amount of interest in trying to figure out the cost to produce a hot rolled coil at the domestic steel mills. This is a question Steel Market Update is asked on an almost weekly basis. We wrote about the subject recently […]
Worthington Industries Inc. has revised its six month outlook due to falling steel prices and demand. In a Feb. 23 press release, Worthington wrote, “The price of steel has dropped over $100 a ton since mid-December. The amount and speed of the decline was not anticipated. When steel prices fall, the Company typically has higher-priced […]
AK Steel announced it will build a Research and Innovation Center in Middletown, Ohio. The 120,000 square foot Center will replace an existing research facility already located in Middletown. The project is estimated at $36 million and will be constructed on a 15 acre site. The Research and Innovation Center will house 75 researchers, scientists […]
North Star BlueScope Steel, a joint venture between BlueScope Steel Ltd. and Cargill, Inc., increased both earnings and shipments in the first half of FY 2015 ending on December 31, 2014. According financial reports from 50 percent owner BlueScope Steel Ltd, which we multiplied by two, North Star BlueScope shipped 1 million tonnes (1.1 million […]
It is no secret, the U.S. flat rolled steel service centers are over-inventoried and mill spot prices are falling. In order to take advantage of the lower pricing, distributors must move off any excess inventories which Steel Market Update has calculated to be approximately 1.145 million tons as of the end of January. (Note: the […]
German steel company SMS is awaiting confirmation from Arkansas state officials to purchase the former Beckmann Volmer building in Osceola, Arkansas. SMS will supply approximately $600 million of steel mill equipment for the future Big River Steel mill. SMS, a provider of integrated systems for the processing of steel and metals, will supply all plants […]
Total service center carbon steel shipments in January increased by 372,400 tons to 3.368 million tons. There was a decrease of one shipping day to 21 in January. On a tons per day basis (t/d) shipments increased from 126,200 in December to 160,400 in January. In the eleven years since 2004 January shipments on average […]
According to data just released by the Metal Service Center Institute (MSCI), U.S. service centers shipped 3,523,600 tons of all steel products during the month of January 2015. The daily shipment rate was 167,800 tons per day which was a slight improvement over January 2014 when the daily shipment rate was 165,800 tons. However, last […]
Reliance Steel & Aluminum fourth quarter consolidated sales rose 11.7 percent year over year to $2.58 billion. Tons sold increased 4.4 percent year over year to 1,469,300 tons. Carbon steel sales of $1.4 billion fell 5.9 percent sequentially with tons sold down 4.7 percent to 1,999,300 tons. The average selling price per ton of steel […]
“It’s not 2008 or 2009.” We heard this from trading companies, steel service centers and mills during the Port of Tampa Steel Conference this past week. This week we are hearing similar comments as we make our rounds talking to those active in the industry. Prices have been collapsing but there does not appear to […]
The acquisition of Serbian steel mill Zelezara Smederevo by Esmark Europe has fallen through. After 10 months of negotiations, Chairman and CEO James Bouchard announced that a definitive agreement for purchase of the mill could not be reached with the Republic of Serbia. A revised proposal from the Serbian government changed the financial terms and […]
Just last week there was an article about Dennis (DJ) Johnson and in his new position as Vice President, Transformation, at Worthington Industries. Johnson joins others now at Worthington including Jim Mortensen, now Director Strategic Product Development and Pat Loney, Product Manager, Hot Rolled and Coated Products. You might think that most of the leadership […]