The United Steelworkers (USW) has rejected a proposal by U.S. Steel that would provide variable bonuses instead of pay raises. “We made it clear to the company that wage increases must be part of our new agreement and that we aren’t interested in the types of variable bonuses schemes that the company has been proposing […]
Looking back last week, the Lex Group celebrated 50 years as a family-owned service center business. Looking ahead, as an affiliate of Union Partners, the company sees a different but equally promising future. With locations in Los Angeles and Chicago, the Lex Group currently distributes more than 240,000 tons of steel per year to a […]
U.S. Steel announced on Thursday that it will invest a minimum of $750 million for asset revitalization at its Gary Works facility in Indiana. “We are pleased to be making this significant investment at Gary Works, which will improve the facility’s environmental performance, bolster our competitiveness and benefit the local community for years to come,” […]
Labor agreements for United Steelworkers at ArcelorMittal and U.S. Steel are set to expire on Sept. 1, but union officials say there has been “little progress on core issues.” In its Aug. 17 update to members, the USW wrote: “Negotiations continued with ArcelorMittal this week in Pittsburgh, and as has been the case since our […]
Mills historically have enjoyed a healthy price premium for cold rolled and galvanized products over hot rolled, at times reaching as high as $220 per ton. More recently, due to the tight supplies of hot rolled, the differential has dipped as low as $80 per ton, prompting at least one mill to act. ArcelorMittal USA […]
North Star BlueScope may receive funding for an expansion that will add 600,000 to 900,000 metric tons of annual capacity to the Delta, Ohio, facility. Australian parent company BlueScope has initiated a comprehensive study to determine the feasibility of a $500 million to $700 million investment that would include a possible third electric arc furnace […]
United Steelworkers labor negotiations with ArcelorMittal are yielding little progress, said an update from the USW to members on Friday. “From local issues to major economics, ArcelorMittal has resisted engaging in meaningful dialogue,” said the communication. USW officials complained that the delays could be a “tactic to undermine the bargaining process” as the Sept. 1 […]
An incident at the D4 blast furnace at Great Lakes Works on Friday, Aug. 10, sent 15 Songer Services contract employees to the hospital. Spokesperson Amanda Malkowski says the incident “was not an ‘explosion,’ as many have been reporting.” The furnace was down for scheduled maintenance at the time, so there is no impact to […]
Russel Metals reported its best quarterly results since 2008 for the second quarter ending June 30. “All of our businesses performed extremely well in the second quarter by adapting to the changing business environment. The continued uncertainty around steel tariffs and trade disruptions has resulted in the realignment of North American supply channels, which our […]
Editor’s note: The following report on China was contributed by the CRU Group. A power shortage is causing steel production reduction in China’s Hebei province, while in Shandong provincial authorities have ordered a new round of capacity cutbacks across the steel, aluminum and coal sectors. To ensure power for residential use, leading electricity supplier, the […]
ArcelorMittal Indiana Harbor suffered an incident on Saturday, Aug. 4, that has shut down its No. 3 blast furnace (IH3) for an estimated two weeks. A company spokesperson reports that process alarms indicated a filling problem on the blast furnace around 5:45 p.m. The furnace was safely shutdown at 6:10 p.m. An initial investigation determined […]
Editor’s note: The following July 30 CRU Insight was authored by John Johnson, CEO of CRU China. CRU believes that China is destined for a new phase of steel industry consolidation that could lead to a fundamental change in China’s steel industry landscape, with ramifications reaching far beyond China. In 2016, the Chinese government published […]
The takeover of Italian steel mill Ilva by ArcelorMittal has encountered another snag. Deputy Prime Minister Luigi Di Maio said he is still not satisfied by the environmental and jobs plan proposed by the steelmaker and will suspend talks until a better offer is submitted. Di Maio said talks could continue later in the week. […]
As a multinational business with a plant in the United States, should NLMK USA have a right to import slabs tariff-free from its parent company in Russia over the objections of domestic steel producers? The Trump administration maintains that steel imports, including Russian slabs, are a threat to the U.S. steel industry and thus national […]
Responding to a request for comment from Steel Market Update, both Nucor and U.S. Steel defended their objections to NLMK’s filing for exclusions that would allow them to import foreign-produced slabs without a tariff. NLMK USA President Bob Miller tells SMU that his company has already paid $90 million in tariffs on the Russian slabs […]
Olympic Steel Inc. announced significantly improved financial results for the three- and six-month periods ended June 30. Net sales for the service center increased 27 percent in 2018’s second quarter, to $453 million, the highest quarterly sales in the company’s history. This compared with $356 million in net sales during the same quarter of 2017. […]
Stelco is enjoying an unaccustomed perspective, the view from the catbird’s seat in the North American steel market. The once-troubled Canadian steelmaker reported operating income of $161 million on sales of $711 million (Canadian dollars) for the second quarter as steel shipping volumes increased by 49 percent over the prior-year quarter. Sales were up 67 […]
Negotiations between United Steelworkers and ArcelorMittal continued last week with counter proposals from management to the proposal submitted by the USW negotiating committee. “On Thursday, ArcelorMittal responded to our initial contract proposal with predictably unacceptable counter offers limited to certain issues, so our work will continue as we bargain for a fair contract,” said a […]
Strong pricing and demand conditions boosted Ryerson’s second-quarter revenues by 20.8 percent from a year ago to $1.1 billion. Revenue increased 12.3 percent from the first quarter of 2018. Adjusted EBITDA, excluding LIFO, more than doubled from a year ago to $106.6 million and was more than 70 percent higher than first-quarter results. Ryerson CEO […]
“We’ve earned the right to grow,” said U.S. Steel Corp. CEO David Burritt during the company’s second-quarter 2018 earnings call. U.S. Steel showed its strength in the second quarter with net sales of $3.6 billion and net earnings of $214 million. Adjusted EBITDA rose from $376 million to $451 million year-over-year. U.S. Steel said its […]
ArcelorMittal NAFTA posted sales of $5.4 billion for the second quarter of 2018, a jump of 12.7 percent from the first quarter. Steel shipments increased by 4.4 percent to 5.8 million metric tons. Improved results were driven by strong market demand and higher shipment volumes. NAFTA segment EBITDA rose 19.6 percent year-over-year. NAFTA segment crude […]
Nucor suffered a fire Monday that knocked out one of the two electric arc furnaces at its Longview, Texas, plate mill. The company is repairing the damage and expects little impact on customers. In an email to Steel Market Update, a company spokesperson said the incident caused no injuries or environmental impact. “Operations have resumed […]
AK Steel earnings slipped a bit in the second quarter due to production disruptions at two of its facilities. Net income totaled $56 million, down from $77.2 million a year ago. Results were impacted by $11.5 million in operational costs associated with a power outage at Butler Works and a fire at the temper mill […]
NLMK USA sales jumped 15 percent to 640,000 metric tons in second-quarter 2018. Revenue for the U.S. segment totaled $590 million, up 37 percent quarter-over-quarter and 35 percent year-over-year, due to rising demand and recent steel import restrictions. EBITDA for NLMK USA increased 90 percent quarter-over-quarter to $76 million supported by growing sales volume and […]
Nucor has experienced two outages at its direct-reduced iron plant in Louisiana, one planned, the other unplanned. On Monday, July 23, shortly after restarting production following a planned 30-day maintenance shutdown, the plant suffered a power outage that shut down DRI production once again. The steelmaker hopes to resume production in three to four weeks. […]
Nucor has purchased a minority position in the parent of Trion Coatings LLC. The company will work with Trion to commercialize an environmentally friendly chrome plating technology. Trion Coatings utilizes a patent pending process using CR(III) salts and a proprietary ionic liquid solution. The process allows for greater electroplating speeds, improved wear resistance and overall […]
Steel Dynamics Inc. confirmed in its second-quarter earnings call that it is in the process of acquiring the idled Kentucky Electric Steel Mill in Ashland, Ky. “I would put it in the classification of a planned acquisition right now,” said CEO Mark Millett. “We haven’t closed on it, although it’s looking favorable.” Kentucky Electric, maker […]
Reliance Steel & Aluminum, North America’s largest service center organization, set a new company record with net sales of $2.99 billion for the second quarter of 2018. Sales grew by 20.8 percent from a year ago and 8.4 percent from the previous quarter. Net income totaled $230.8 million, up 124.1 percent from Q2 2017 and […]
Steel Dynamics reported net sales of $3.1 billion and net income of $362 million for the second quarter of 2018, more than doubling its year-over-year income. First-quarter 2018 net sales totaled $2.6 billion with net income of $228 million. “Our second-quarter 2018 income from operations increased 55 percent sequentially to a record $502 million, and […]
Nucor’s consolidated net earnings in the second quarter of 2018 jumped to $683.2 million, the second highest quarterly earnings in the company’s history. In comparison, earnings were $354.2 million in the first quarter and $323 million in Q2 2017. Nucor’s Chairman and CEO John Ferriola attributed the successful quarter to an upturn in the steel […]