Bank lenders to Essar Steel Group have approached Tata Steel and JSW Steel to buy out the company according to sources quoted by CNBC. Bankers took matters in their own hands after expressing concern that Essar Steel cannot pay back Rs 40,000 crore (about $6 billion) in loans to State Bank of India and other […]
Sault Ste. Marie Mayor Christian Provenzano has appealed to Ontario Premier Kathleen Wynne for help in saving Essar Steel Algoma. Under terms of the sales and investment solicitation process, potential buyers for Essar Steel Algoma are to submit binding offers by May 13. “Based on my own assessment of the matter and taking into consideration […]
An Essar Steel Algoma and US Steel Canada combo may be in the works. Bloomberg reports that bidders for US Steel Canada are looking at combining the operations at Algoma with those at Hamilton and Lake Erie Works. The resulting steel company could become a major competitor in the North American steel market. Potential bidders, […]
SAULT STE. MARIE, ONTARIO – On January 29, 2016, Essar Steel Algoma appealed to the Federal Court of Appeal to overturn the January 6, 2016 decision of the Canadian International Trade Tribunal (“CITT”) regarding dumped and subsidized hot-rolled carbon steel plate and high-strength low-alloy steel plate imports from India and Russia. In their ruling, the […]
Essar Steel Algoma, under CCAA protection since November 9, 2015, officially went on sale today. The company posted the following announcement on its website: SAULT STE. MARIE, ON – Effective immediately, pursuant to an order by the Ontario Superior Court of Justice of Ontario on February 11, 2016, Essar Steel Algoma Inc. is commencing a […]
First, a note to our Premium level members (subscribers) we will produce another Premium supplemental issue of our newsletter for you tomorrow afternoon. The newsletter will contain the most recent CPIP (construction put in place) data. We also will release the results of this week’s flat rolled steel market trends analysis in the form of […]
Cliffs Natural Resources narrowed its net loss to $58 million in fourth quarter compared to $1.4 billion in Q4 2014. Full year net loss was $748 million compared to $8.3 billion in the prior year. “Despite the severely negative impacts of global iron ore and domestic steel prices, in 2015 we achieved substantial cost reductions […]
Essar Steel Algoma has received permission from a Toronto court to suspend special payments to its pension fund. The announcement alarmed retirees who were unsure what the suspension meant for their monthly pensions and benefits. Would they receive their checks? The decision was explained by Don Barill, president of the Steelworkers Organization of Active Retirees […]
Essar Steel Algoma will begin the process of looking for a buyer or investor next month according to letters sent to suppliers by CEO Kalyan Ghosh. Under terms of the Debtor In Possession (DIP) Agreement, the company must get court approval for a “broad and investment solicitation process (SISP)” by February 1, 2016. “While we […]
The Canadian International Trade Tribune determined on Jan. 6 that the dumping of hot-rolled carbon steel plate and high-strength low-alloy steel plate originating in or exported from India and Russia have not caused injury and are not threatening to cause injury to the domestic industry. CITT also found no injury from the subsidizing of those […]
The Canada Border Services Agency has made final determinations that dumping has occurred on hot-rolled carbon steel plate and high-strength low-alloy steel plate originating in or exported from India and Russia and subsidizing on hot-rolled carbon steel plate and high-strength low-alloy steel plate originating in or exported from India. The investigation on subsidizing from Russia […]
Navigation for freighters on the Great Lakes is winding to a close. This winter is expected to be warmer which may mean less ice on the Lakes and fewer delays of ore to mills when the shipping season reopens. The past two winters saw unusually high levels of ice coverage that persisted into April and […]
A law suit filed by Cliffs Natural Resources against Essar Steel Algoma was dismissed without prejudice on Dec. 3 by the Court for the Northern District of Ohio, in recognition of Algoma’s current CCAA proceedings. The ruling includes the suit filed on January 12, 2015 by Cliffs for US $90 million and Essar Steel Algoma’s […]
It will soon be more expensive to export Chinese steel line pipe to Canada. Canada Border Services Agency released its preliminary determination on dumping and subsidization of steel line pipe exported from China and assigned provisional duties ranging from 71 percent to 396 percent. CBSA estimates that in 2014, 48.8 percent of carbon and alloy […]
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 […]
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 […]
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 […]
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 […]
Cliffs Natural Resources reported net income of $6 million for third quarter compared to a net loss of $6.9 million in Q3 2014. Cost cutting brought US Iron Ore Operations cash production costs down 16 percent to $49 per ton; Asian Pacific Iron Ore cash production costs decreased a record 49 percent to $27 per […]
Steel earnings calls began this last week and all of them reference the downturn in the oil industry and its effect on production. Low oil prices, overcapacity, and resulting weak demand for OCTG products continues to force firms to adjust output and workforce. Vallourec Star Steel announced this week that it will begin a third […]
Essar Steel Algoma announced it has secured an alternate, interim iron ore supply and is withdrawing its motion for a Temporary Restraining Order against Cliffs Natural Resources. Essar will continue to pursue resolution of the matter of breach of contract through the court system. Cliffs Natural Resources, as of Oct. 5, canceled its 3 million […]
Flat rolled steel buyers and industry executives reported steel mills in both Canada and the United States as “aggressively looking for business” to run across their lines. Steel Market Update spoke with a manufacturing company on Monday who told us their company had been approached by a domestic mill not usually associated with cheap hot […]
Cliffs Natural Resources has terminated its iron ore supply agreement with Essar Steel Algoma alleging Essar made multiple and material breaches under the agreement. “While the agreement has been terminated, Cliffs remains open to discussing supplying Essar with pellets on commercially reasonable terms consistent with a just-in-time iron ore supply arrangement,” said Cliffs in a […]
I, Hillary Clinton, Jeb Bush and a number of steel people are all in Davenport, Iowa enjoying the warmer than normal weather and great conditions to do a mill tour which is exactly what we did this afternoon (without Hillary and Jeb). I want to thank everyone at SSAB for their hospitality and for doing […]
Essar Steel Algoma will begin laying off employees on Sunday evening (Oct. 4) starting with the evening shift. USW Local 2551 received notice that approximately 100 workers will be cut, with the plate and cold mills most heavily affected. “We’ve had to match staffing levels to production and we have experienced a sustained drop in […]
An investigation into dumping and subsidizing of hot rolled steel plate imports from India and Russia was been initiated by the Canadian International Trade Tribunal on Sept. 9. The investigation follows a preliminary determination of dumping and subsidization from the Director General of the Trade and Anti-dumping Programs Directorate at the Canada Border Services Agency […]
Concern is mounting regarding US Steel’s announcement that it will move production from US Steel Canada to the United States. “When is the federal government going to stand up to U.S. Steel and defend Canadian workers and pensioners?” asked Gary Howe, President of USW Local 1005 in Hamilton in a recent USW posting. “From Day […]
Essar Steel Algoma announced that first quarter FY 2016, ending June 30, 2015, closed with a positive EBITDA of CDN $12.4 million. Capacity utilization was at 90 percent and steel shipments of 632,000 tons were 19 percent higher year over year. Higher production and shipments, however, were unable to counter low pricing caused by dumped […]
Essar Steel is in the running for purchase US Steel Canada according to an anonymous source close to the bidding process. According to the Hamilton Spectator, the source said Essar Steel Holdings is interested in purchasing both Hamilton Works and Lake Erie Works, the only bidder interested in the entire USSC operation. Other bidders are […]
Essar Steel Algoma announced a return to profitability with income from operations of CDN $76.3 million at the closing of its fiscal year 2015 on March 31, 2015. “Fiscal 2015 marked a turnaround for Essar Steel Algoma. Through the recently announced Modernization and Expansion Program, we expect to offer a much broader range of advanced […]