On Monday we will begin our next flat rolled steel market analysis. We will be sending out approximately 600 invitations to participate in our survey. If you receive an invitation please click on the link contained in the message and spend a few minutes responding to our inquiries. The ArcelorMittal Cleveland C-5 blast furnace is […]
SMU sources advised us on Wednesday that the steelmaking operations at U.S. Steel Great Lakes (Ecorse) in Michigan had begun. This afternoon, US Steel confirmed that the start-up process was underway with no further elaboration or comment. We anticipate that the mill will begin making prime steel within a few days to a week. Our […]
We have been getting mixed messages regarding the Ecorse or USS Great Lakes steelmaking operations. Our sources have been advising us that there have been plans to bring the furnaces and #2 BOP back up over this past weekend (did not happen) and then again today (still not up). Other sources close to the situation […]
U.S. and Canadian steel mills continue to keep a firm grip on pricing as supply (production) related problems keep lead times extended on most products. We are seeing the impact of foreign galvanized and Galvalume imports influencing at least one coated steel mill in the South. Domestic buyers appear to be accepting the higher prices […]
The C-5 blast furnace at ArcelorMittal Cleveland suffered a breakout at the taphole on Thursday, May 8. A spokesperson at ArcelorMittal says there were no injuries as a result of the incident and the furnace should be fully operational by the week of May 19. In the meantime, the mill will coordinate with other ArcelorMittal […]
ThyssenKrupp posted a positive net income for the first time in seven quarters. After aggressively shedding businesses and employees during the fiscal year, including the sale of the Alabama Calvert plant, ThyssenKrupp appears to have achieved a turnaround. The company hopes to break even for the 2013/2014 fiscal year and expects sales for the year […]
ArcelorMittal losses narrowed in the first quarter of 2014. The company posted a net loss of $200 million in the first quarter compared to $345 million in Q1 2013. First quarter EBITDA was $1.75 billion, an increase of 23 percent from Q1 2013. Sales of $19.8 billion were below Q4 and almost par with Q1 […]
The key highlight of first quarter was the Calvert acquisition, said ArcelorMittal CEO Lakshmi Mittal in the company’s first quarter earnings call. ArcelorMittal’s 50 percent ownership of AM/NS Calvert gives AM the capacity needed to supply AHSS solutions for the auto industry in the US and Mexico. ArcelorMittal has been focusing on light weight steels […]
Steel Market Update sources confirmed that the two Severstal North America (NA) steel mills are for sale. At 7.0 million tons of steelmaking capacity, Severstal NA is the fourth largest flat rolled steel producing mill in the United States. Rumors of the possible sale of the Dearborn and Columbus facilities had been circulating around the […]
In case you missed the special issue we put out on Saturday we have reproduced the article below: Steel Market Update sources confirmed that the two Severstal North America (NA) steel mills are for sale. At 7.0 million tons of steelmaking capacity, Severstal NA is the fourth largest flat rolled steel producing mill in the […]
ArcelorMittal’s Canadian iron ore project may begin production as early as third quarter 2014. Last week the Minister of Aboriginal Affairs and Northern Development gave final approval for Baffinland Iron Mines, a 50/50 venture between ArcelorMittal and Nunavut Iron Ore, to commence operations. The mine is located in the Qikiqtani region of Nunavit, over 300 […]
Iron ore smuggling has become a concern of the Mexican government with the diversification of the Knights Templar drug cartel into mining operations in the western state of Michoacán. Mexican authorities have seized nearly 200,000 tons of illegally mined and shipped iron ore headed for China so far this year. Last week a ship was […]
You can expect to begin to read a lot of articles calling for prices “peaking” or about the subject of where do prices go from here. The expectation is that prices will move lower and everyone will have an opinion or theory as to why this will happen. Others will make the case for sideways […]
Mike Rippey, president and CEO of ArcelorMittal USA, has been elected Chairman of the American Iron and Steel Institute (AISI). Rippey will serve as chairman until May 2015, leading advocacy efforts on behalf of AISI and the industry to advance pro-manufacturing polices that will enhance the competitiveness of the North American steel industry. “Mike’s been a strong […]
Steel Market Update is aware that many buyers and sellers of steel have been keyed in on the variations between various flat rolled steel indexes. In the past, Steel Market Update found the spread between our steel index and those of Platts and CRU to generally be negligible ($1-$10 per ton at any one time). […]
The US Army Corp of Engineers Buffalo District will be dredging the upper and lower Cuyahoga River in 2014 to improve the navigation canal that is used to deliver iron ore to Cleveland’s steel mills. Nearly 10 million tons of cargo travel through Cleveland Harbor and the Cuyahoga River each year according to the Port […]
The enormous undertaking by the US and Canadian Coast Guard to clear the Great Lakes of ice this year underscores the need for passage of the Water Resources Development Act (WRDA). Over 200 million tons of cargo, including iron ore and coal for steel mills, are shipped every year through the Great Lakes, according to […]
AK Steel CEO James Wainscott, in the company’s earnings conference call with analysts, reported that their blast furnaces were running at reduced capacities due to the ice problems on the Great Lakes. US Steel has been upfront by reporting their Gary Works steelmaking operations are running at less than capacity as they struggle to get […]
Earlier today, Steel Market Update (SMU) participated in the monthly galvanized steel with members of HARDI. The last conference call was held the day after ArcelorMittal has announced the first of two price increases during the month of March (Galvanized base of $39.50/cwt). The purpose of today’s call was to discuss what has been happening […]
We learned today that ArcelorMittal will be taking down their #7 blast furnace at Indiana Harbor for two months: June & July 2014 (scheduled maintenance). The #7 furnace is capable of producing up to 11,500 tons of molten pig iron per day when ready at full capacity. Our assumption is US Steel Gary Works should […]
Coast Guard cutters are still helping iron ore freighters to navigate to their destinations on the Great Lakes. Ore freighters Sam Laud (destination Duluth), Stewart J. Cort and Algoma Discovery (destination Superior), Edwin Gott and Edgar B Speer (destination two Harbors) are in a convoy of five ships underway in Lake Superior at the tip of […]
Steel Market Update is aware that many buyers and sellers of steel have been keyed in on the variations between various flat rolled steel indexes. In the past, Steel Market Update found the spread between our steel index and those of Platts and CRU to generally be negligible ($1-$10 per ton at any one time). […]
Bank of America Merrill Lynch gave their quarterly global steel outlook on April 8. BofAML predicts demand for finished steel in China will grow 4.4 percent in 2014. Chinese crude steel production is expected to increase 4.6 to 815 million tons. The outlook is for a trend of slowing but positive growth. Despite mill closings […]
“Mills are stubborn this week. We’ll see what happens when US gets caught back up,” is how one steel executive pegged the market for Steel Market Update earlier today. Many of the steel service centers we spoke to over the past few days are indicating there is strengthening demand in portions of their business. What […]
On Friday morning, April 4th, Nucor became the first mill to announce a new wave of flat rolled steel price increases. In a letter to their customers, the Nucor Sheet Mill managers advised that effective immediately, minimum base prices would be as follows: Hot Rolled = $34.25/cwt ($685 per ton)Cold Rolled = $40.75/cwt ($815 per […]
Unusual ice build-up on the Great Lakes has caused delays of raw materials headed for steel mills in the Midwest. Earlier this week, US Steel notified customers that Gary Works blast furnaces and steelmaking operations will be down temporarily due to “unforeseen and unprecedented ice conditions on the Great Lakes that is delaying the transportation […]
The month of March proved to be an interesting month for the flat rolled steel industry and related commodities associated with the industry, both within North America and around the world. The biggest news was the move by the domestic mills to raise flat rolled steel prices. ArcelorMittal led the way on March 17th when […]
In an email sent late in the afternoon on Monday, March 17th, ArcelorMittal USA announced a price increase on all of their new flat rolled orders, with specific base prices at $33.00 for hot rolled, $39.50 for cold rolled, and $39.50 for galvanized. The mill justified their increase by stating “Despite the recent drop in […]
Flat rolled steel pricing momentum reversed course due to the price increase announcement led by ArcelorMittal and followed by virtually all of the domestic and Canadian steel mills. We moved the SMU Price Momentum Indicator first to Neutral and then a week later to Higher in response to the increase announcements and the fact that […]
ArcelorMittal and Nippon Steel Sumitomo Metal Corporation (NSSMC) announced Chris Richards has been appointed president of AM/NS Calvert. Richards will oversee all areas of operations at the Alabama mill and will report to and serve on a joint venture managing board. He most recently served as president of the AM/NSSMC joint venture I/N Tek and […]