USW Local 2251 at Essar Steel Algoma has called a strike vote for Tuesday, February 28. The union says it has no choice after withdrawing a complaint with the Ontario Labour Relations Board and accepting that the collective agreement contract expired on July 31, 2016. The union is now subject to the provisions of Local […]
Essar Steel Algoma announced on Tuesday that it has received an extension to its Debtor-in-Possession financing facility (DIP). The Ontario Superior Court of Justice approve the amendment and extension on January 31, extending the DIP to March 31 with the option of a further thirty day extension. Stay of proceedings has also been extended to […]
In the last week there have been four statements released regarding the restructuring of Essar Steel Algoma. The first began last weekend with an appeal by former parent company Essar Global to be readmitted to the bidding process for Algoma. Essar Global criticized the Sales and Investment Solicitation Process (SISP) noting that KPS Capital dropped […]
A war of words is underway between Essar Steel Algoma secured creditors and former parent company Essar Global Fund. In a letter to the CCAA monitor Essar Global asserted that with the restructuring efforts still not resolved, the Sale and Investment Solicatation Process should be reopened to allow Essar to present its interest in acquiring […]
Are steel prices poised to give back some of the gains collected over the past few months? Steel Market Update and our readers have been debating this subject as word of mills being more receptive to negotiate steel pricing has been leaking out into the market. On Tuesday of this week, SMU published an article […]
Another complication has hit Essar Steel Algoma in its efforts to restructure and pull its way out of CCAA protection. The United Steelworkers Local 2251 has been offered a new contract that asks hourly workers to accept a 10 percent wage cut, elimination of cost of living increases, and cuts to paid vacations. The local […]
Essar Steel Algoma is continuing its restructuring process into the New Year despite hopes it would emerge from CCAA protection by the end of 2016. The year ended with the Term Loan Bidders trying to negotiate a deal to purchase Algoma and secure approval from the United Steelworkers. Algoma’s DIP financing will expire as of […]
United Steelworkers Local 2251 wants clarification from the Ontario court on whether it has permission to talk with Essar Global backed Ontario Steelworks about its bid for Essar Steel Algoma. Local 2251 favors a bid by Ontario Steelworks saying it would preserve the pension plan and union rights under the collective agreement. In July, the […]
Nucor Plate Mill Group was the first of the plate mills to reach out to their customers and advise them of their intention to take plate prices up by $50 per ton. On Tuesday of this week, Nucor sent a letter via email to their customers stating, “Due to current market dynamics, plate pricing has […]
On Wednesday of this week I participated in the monthly HARDI conference call (see article in tonight’s newsletter). During the call one of the executives from an east coast HVAC wholesaler told the group that he didn’t believe prices could or would move much higher from here. I disagreed with him. One of the justifications […]
With all of the domestic steel mills announcing $30 per ton price increases either late last week or early this week, the industry is waiting to see if there was a surge of orders and how those orders have impacted lead times. Everyone knows if lead times begin to extend then buyers will have no […]
On Friday morning US Steel got the ball rolling by announcing a $30 per ton price increase on all spot sales of flat rolled steel (hot rolled, cold rolled and coated products). Before the afternoon was out two other steel mills followed: Nucor and California Steel Industries. On Monday a number of mills were heard […]
Essar Steel Algoma has filed a legal proceeding against Essar Global Fund and its affiliates charging that the Essar Group has engaged in a course of conduct that consistently preferred the interests of the Essar Group and, in particular, Essar Global Fund, to those of Algoma and its stakeholders. This conduct, charges Algoma, includes the […]
Essar Steel Algoma is approaching the end of one year of protection under the Canada’s Companies Creditors Arrangement Act. The company entered protection on November 9, 2015. The latest court monitor report by Brian Denega, senior vice principle of Ernst & Young, shows the company maintaining its production and stocking up on iron ore for […]
The following article on the hot rolled coil (HRC), busheling scrap (BUS), and financial futures markets was written by David Feldstein. As Flack Steel’s director of risk management, Dave is an active participant in the hot rolled coil (HRC) futures market and we believe he will provide insightful commentary and trading ideas to our readers. […]
Essar Steel Algoma’s court monitor, Ernst & Young, has received authorization to investigate a complicated deal that the company made with the Port of Algoma two years ago. The inquiry is the result of a request by the debtor-in-possession lenders (DIP) for Essar Steel Algoma. In 2014, Essar Steel Algoma leased its dock to the […]
SAULT STE. MARIE – Essar Steel Algoma Inc. (“Essar Steel Algoma” or the “Company”) obtained an Order today from the Ontario Superior Court of Justice extending the stay of proceedings under the Companies’ Creditors Arrangement Act (CCAA) to January 31, 2017. The Court further approved an amendment and extension to the existing Debtor-in-Possession financing facility […]
Tenaris is recalling workers to its Tenaris Algoma Tubes factory in Sault Ste. Marie. The facility which make seamless pipe for the oil and gas industry has been idle since February 8 due to continued adverse market conditions in the energy sector. Tenaris Algoma Tubes said it will recall 120-150 employees and restart production in […]
Essar Steel Algoma will lay off 300-330 personnel during a maintenance shutdown of the plate and strip complex this week, said Brenda Stenta, manager of corporate relations for Algoma. The layoffs are only temporary and employees should return to work after about a week. The maintenance shutdown coincides with a weakness in the plate market […]
Essar Steel Algoma issued layoff notices to approximately 70-85 employees just before the Labor Day weekend citing low demand and pricing for steel plate. Plate demand is down in the energy, rail and agricultural markets and is coupled with prices below hot-rolled coil due to low priced and dumped imports. Said Brenda Stenta, spokesperson for […]
Essar Steel Algoma generated positive earnings in May and June, due to higher steel pricing, resulting in net revenue of C$136 million in June and total net revenue of C$753 million for the first half of 2016. EBITDA before restructuring costs was negative C$49 million for the first six months of 2016. For the reporting […]
The Canadian International Trade Tribunal has renewed its dumping finding against China, Brazil and Ukraine and its subsidy finding against India in regards to the import of hot rolled steel sheet and strip. The CITT decision extends antidumping and subsidy duties another five years. In a press release from Essar Steel Algoma, applauding the decision, […]
A wolf in sheep’s clothing is still a wolf. Essar Global clothed in the nomenclature of Ontario Steel Investments works is still Essar Global according to US Steel Canada. The bid by Ontario Steel Investments (Ontario Steelworks), announced on Tuesday, was rejected by US Steel Canada on Wednesday. US Steel Canada said it had already […]
Ontario Steel Investments Limited (Ontario Steelworks) said on Tuesday that it has submitted a bid to buy US Steel Canada. The August 5th offer includes the assumption of the US Steel Canada pension plan, currently estimated at C$954 million ($724 million) and a commitment to provide C$25 million per year for post-employment benefits for current […]
I don’t know if I have ever seen a market quite like the one we are living through right now. Supply is being constrained through the use of the trade suits coupled with US Steel taking down two blast furnaces at Granite City and AK Steel taking down their lone blast furnace at Ashland. There […]
A new bidder may step forward for Essar Steel Algoma, according to UK publication Financial Times. According to the Financial Times, Liberty House, a metal trade and integrated steel producer, hopes to secure deals for both Essar Steel Algoma and US Steel Canada. Liberty is also watching the developments in the Chapter 11 bankruptcy at […]
SAULT STE. MARIE – Essar Steel Algoma Inc. (Algoma) has received notice from the Term Lenders that the Consortium Agreement between KPS Capital Partners LP and certain Term Lenders has been terminated. The Term Lenders have indicated that they remain committed to a going-concern outcome for Algoma and all of its stakeholders, and to closing […]
Ontario Steel Investment says it signed a letter of intent with USW Local 2251 for the acquisition of Essar Steel Algoma. Ontario Steel says it will assume all employer liabilities for Essar Steel Algoma’s pension plan in return for a purchase price of US $900 million for the acquisition of the company. Ontario Steel is […]
It appears that Essar Global has been eliminated from the bidders vying for the assets of US Steel Canada. The Hamilton Spectator is reporting that the USSC board of directors has rejected a bid from Essar Global because of concerns that the company lacks the financial resources to complete a purchase. Essar was rejected as […]
Essar Steel Algoma filed a formal motion for approval of the sale of the company to KPS Capital. The asset purchase agreement will sell the assets of Algoma for a combination of cash sufficient to pay the outstanding liabilities under the DIP facility, a credit bid of the term loan debt, and assumption of certain […]