Kloeckner Metals Corp. shipments fell by 3.8 percent year-on-year in the first half of 2014, due to the extended winter, consolidation of sites and the reduction of low-margin business. EBITDA improved by 27 percent from €41 million to €52 million ($55 million to $69.7 million), helped by operational improvements and higher-margins. The company expects US […]
Olympic Steel & Aluminum posted the highest net sales in its history. Second quarter sales increased 16.7 percent year-over-year to $386.0 million, due to increased market share and higher sales volume. Net income jumped 38 percent to $3.5 million from $2.5 million in Q2 2013. Flat product volume was up 17 percent in Q2 to […]
The Steel Market Development Institute (SMDI), a business unit of the American Iron and Steel Institute (AISI) announced that Dr. Jody N. Hall will succeed Ronald P. Krupitzer as Vice President Automotive Market following Mr. Krupitzer’s retirement at the end of the year. Dr. Hall is a former Technical Integration Engineer at General Motors Company […]
US automotive sales were hot in July with double digit increases for many automakers. WardsAuto estimates 1.43 million vehicles were delivered in July, a 9.1 percent over July 2013. The seasonally adjusted annual rate of 16.4 million came in lower than the consensus range forecast of 16.6 million to 17.2 million. Summer sales incentive helped […]
Armada Corporate Intelligence reported there may be some challenges to automotive sales looming on the horizon. The rate of disposal of older vehicles is not keeping pace with new car sales. But, that is just one of the issues the automotive companies may face. The following article came from the Friday, August 1, 2014 issue […]
AM/NS Calvert production continues to increase with the hot mill running at 83 percent utilization in June. Initial slab shipments from ArcelorMittal Tubarao and ArcelorMittal Mexico were received in second quarter and are currently in trials. ArcelorMittal is still determining what the final split will be on shipments from the two mills to the US—Tubaro […]
ArcelorMittal posted a profit of $52 million in the second quarter, following a string of quarterly losses that included a $205 million loss in Q1 2014 and a $780 million loss in Q2 2013. Steel shipments increased by 2.5 percent y/y to 21.5 million tonnes (23.7 million net tons). Net debt decreased to $17.4 billion […]
Big River Steel CEO John Correnti says government should “stay out” of private industry. What appeared to be a contradiction after receiving more than $125 million in incentives from the state of Arkansas, Correnti stated in an interview with Arkansas Business that states have to invest in big business in order to stay competitive, but […]
Improved demand and higher prices in North America helped SAAB Americas report a strong profit for second quarter and the first half of 2014 after reporting losses in both time periods in 2013. SSAB Americas steel sales soared 15 percent year over year in the second quarter of 2014 and 9 percent on a quarterly […]
WASHINGTON, D.C. – The American Iron and Steel Institute (AISI) today announced the release of its 2013 Annual Statistical Report (ASR). The 2013 ASR shows that U.S. steel production, shipments, imports and exports all decreased in 2013 vs. 2012, as U.S. steel markets remained below pre-recession levels. U.S. steel shipments were at 95 million net […]
AK Steel has announced that it will acquire the Severstal Dearborn a cokemaking facility and three joint ventures from OAO Severstal for $700 million. Here is the AK Steel press release: West Chester, OH, July 21, 2014—AK Steel (NYSE: AKS) said today that it has signed an agreement to acquire Severstal North America’s integrated steelmaking […]
Steel Dynamics has announced the purchase of the Severstal Columbus steel mill for $1.625 billion in cash. According to the mill the purchase price will be financed with available cash and debt. The Columbus mill expands their hot rolled steel production by 3.4 million tons and broadens their product portfolio as well as geographical reach […]
On Monday, July 21, 2014 OAO Severstal announced the sale of their two steel mills located in the United States for $2.325 billion. The two mills, Severstal Dearborn and Severstal Columbus were purchased by AK Steel and Steel Dynamics (SDI), respectively. The acquisition of the Severstal assets by two existing steel suppliers is being touted […]
Steel Market Update is well aware of the rumors which have been circulating regarding the potential sale of the Severstal North American steel mills. Late last week we learned from our sources that Steel Dynamics and AK Steel were close to purchasing the two U.S. steel mills owned by OAO Severstal out of Russia. Steel […]
U.S. light vehicle sales beat expectations again in June by surging to 17.0 million units at a seasonally adjusted annual rate, (SAAR). This was the best performance since mid-2006. All of the improvement was in auto sales which increased from 8.1 to 8.3 million SAAR. Light truck sales were flat at 8.7 million. Pent-up demand, […]
As you may have noticed, we have been writing a series of articles highlighting the benefits of our Premium membership. Through the end of July, our Executive members will have access to our Premium content. If you have not yet explored our Premium content, such as SMU’s survey data or imports by product/port/country, I would […]
First thing I want to say is everyone needs to be aware that the market is plum full of rumors and half-truths. There are rumors about dumping suits, Severstal sale, pricing (going both ways) and more. When you hear something question the source, see if there is anything in writing or if the information can […]
Big River Steel will break ground on the new 1.6 million ton flat rolled mill some time later this month, according to their Chief Commercial Officer, Mark Bula. Construction of the new flat rolled electric arc furnace mini-mill was delayed for about a year as Big River Steel (BRS) had to wait until all air […]
U.S. light vehicle sales increased in May to nearly 16.8 million units at a seasonally adjusted annual rate, (SAAR) up from an average of 15.8 million units in the first five months of 2014 and the strongest rate since February 2007. Light vehicles are autos and light trucks (GVW Classes 1-3, under 14,001 lbs.). Automotive […]
The Institute of Supply Management released their June report on July 1st. The June PMI registered 55.3 percent, down slightly from 55.4 percent in May. Any number > 50 indicates expansion and this was the thirteenth straight month for which this was the case. The three month moving average (3MMA) advanced for the third consecutive […]
The Institute of Supply Management released their June report on July 1st. The June PMI registered 55.3 percent, down slightly from 55.4 percent in May. Any number > 50 indicates expansion and this was the thirteenth straight month for which this was the case. The three month moving average (3MMA) advanced for the third consecutive […]
Final financing has been approved for Big River Steel in Mississippi County, Arkansas. Construction is expected to begin in July with a formal groundbreaking ceremony in September according to a spokesperson for the Arkansas Economic Development Commission (AEDC). “It’s truly been a team effort between our investors, local and state leadership, our management team, and […]
The JP Morgan Global Manufacturing PMI rose moderately to 52.7 in June from 52.1 in May, an expansion of the manufacturing sector for the 19th month. Production increased at the fastest rate since February due to a flow of new orders. International trade volumes were subdued in June reported JP Morgan and Markit. The June […]
Worthington Industries announced it had “a great fiscal 2014” in its earnings report on Thursday. The company reported net earnings of $151.3 million for FY 2014. Net sales were up 20 percent year over year to $3,126.4 million due to the consolidation of joint venture Tailor Welded Blanks, higher steel processing volumes and the acquisitions […]
Hello from Chicago, home of our first Managing Price Risk II: Strategies & Execution workshop. We have an excellent group in attendance and the program is going well. Tomorrow (Wednesday) is day 2 when we provide an opportunity to our attendees to do simulated trading based on profiles and directives that they have to meet […]
U.S. light vehicle sales increased in May to nearly 16.8 million units at a seasonally adjusted annual rate, (SAAR) up from an average of 15.8 million units in the first five months of 2014 and the strongest rate since February 2007. Light vehicles are autos and light trucks (GVW Classes 1-3, under 14,001 lbs.). Automotive […]
Steel Dynamics Inc. (SDI) expects higher profits in second quarter compared to first quarter 2014. In its Second Quarter Earnings Guidance, SDI said steel shipments and metal spreads are improving despite increased import activity. SDI anticipates demand from automotive, manufacturing and construction will continue to trend upward. Residential construction has rebounded with the return of […]
“No-one should doubt that steel remains the material of choice for the automotive industry,” asserted ArcelorMittal Chairman and CEO Lakshmi Mittal at the annual Steel Success Strategies conference in New York. “I want to stress that steel can provide all the weight reduction that auto producers require to satisfy the new fuel efficiency standards; for […]
We included this article in tonight’s issue because we saw evidence of confusion between the defunct Warren Steel of RG Steel fame and that of Warren Steel Holdings which is a long products mill also located in Ohio. Long products producer Warren Steel Holdings, LLC (not to be confused with the former Warren flat rolled […]
A short note to let our Premium Level members know that our Steel Market Update survey results are online and can be accessed on the website. If you need assistance accessing any of the Premium products on our website please let me or Brett@SteelMarketUpdate.com know and we will help you. We are also sharing this […]