Winter weather weakened auto sales for a second month. February sales rose to a seasonally adjusted annual rate of 15.29 million in February from a nine month low of 15.2 million in January. Sales fell below analyst consensus of 15.4 million and IHS forecast of 15.5 million. WardsAuto estimates inclement weather pushed sales down by […]
The sale of ThyssenKrupp USA to 50/50 joint venture partners ArcelorMittal and Nippon Steel & Sumitomo Metal Corporation is finally complete. The $1.5 billion acquisition of the Calvert, Ala., hot rolled, cold rolled and coating and finishing mill has met all regulatory approvals allowing ThyssenKrupp a sigh of relief and AM & NSSMC the opportunity […]
ArcelorMittal and Nippon Steel & Sumitomo Metal Corporation (NSSMC) announced the new name for the “world’s most modern steel finishing facility”—the former ThyssenKrupp mill in Alabama—will be AM/NS Calvert. The announcement was made during a private employee-only reception held at facility on Thursday. “The name is AM/NS Calvert. AM and NS need no explanation. And […]
The sale of ThyssenKrupp USA to 50/50 joint venture partners ArcelorMittal and Nippon Steel & Sumitomo Metal Corporation is finally complete. The $1.5 billion acquisition of the Calvert, Ala., hot rolled, cold rolled and coating and finishing mill has met all regulatory approvals allowing ThyssenKrupp a sigh of relief and AM & NSSMC the opportunity […]
Buyers and sellers have mixed emotions and opinions regarding the current steel market. Most companies which Steel Market Update has spoken or traded emails with over the past few weeks are telling us their order books are “OK” and in line with what they saw last year at this time. Most companies believe their demand […]
I have to admit I am very impressed with the quality of the speakers and the program that has been put on by the FMA Toll Processors Conference. One of the reasons why I am attending this particular conference was due to the agenda which included a couple of programs about Advanced High Strength Steels […]
Honda began production of the 2015 Honda Fit last week at its new Honda de Mexico, S.A. de C.V. (HDM) plant, located in Celaya, Guanajuato. The plant will increase Honda’s annual automotive production capacity in North America to around 1.92 million units. Currently 90 percent of Hondas sold in the US are built in North […]
Australian company BlueScope Steel announced EBIT of AUD$48.7 million ($44 million) for its Hot Rolled Products North America segment for the first half of FY 2014 ending December 31, 2013. EBIT increased 48 percent from the same period in FY 2013. The segment includes a 50 percent interest in US-based North Star BlueScope Steel Ltd […]
In 12 months through January 16,126,151 light vehicles and 440,473 medium and heavy trucks were assembled in the NAFTA. On a rolling 12 month basis year over year (y/y) light vehicle assemblies were up by 5.2 percent. In 3 months through January y/y the increase was 2.6 percent. Momentum is negative since the short term […]
It’s hard to sell cars when they are covered by snow and customers are being warned to stay safe and snug at home. As a result, auto dealers watched sales freeze and inventory pile up in January. Total auto inventory increased to 3.61 million units at the end of January, the highest it’s been in […]
Gibraltar Industries is expecting 2014 growth to be driven mainly by the residential new construction and residential remodeling said the company in its earnings call on Feb. 20. “While we’re starting 2014 at a relatively slow pace given the cold and harsh weather in much of the country since the new year, we believe the […]
Reliance Steel & Aluminum Company reports fourth quarter 2013 sales for all products were $2.31 billion, up 22.1 percent from $1.89 billion in the fourth quarter of 2012 and down 5.6 percent from $2.44 billion in the third quarter of 2013. Net income for the quarter was $61.8 million, compared to $95.1 million in third […]
Tonight’s issue is a mouth full. There are times when events occur which need more than 300 words to address. And, in the steel industry, there can be many viewpoints on the same subject. OCTG is one of those subjects. I hope you found the three articles from David Phelps, Paul Lowrey and Peter Brebach. […]
Steel Market Update (SMU) participates in a monthly galvanized steel conference call with the HARDI wholesalers, manufacturing companies and service centers associated with the HVAC related organization. The wholesalers in the Upper Midwest, East Coast and as far west as Wichita, Kansas reported having lost 5-6 days of shipments due to inclement weather in their […]
ThyssenKrupp AG finances are beginning to improve. Earnings before interest and tax (EBIT) more than doubled to €247 million ($338 million) in the first quarter FY 2013-2014 (ending Dec. 31, 2013). Net debt dropped to €4.6 billion ($6.3 billion) from €5 billion ($6.8 billion) the previous quarter. ThyssenKrupp’s gearing ratio (net debt to equity) was […]
The Volkswagen AG workers at the Chattanooga automotive assembly plant voted 712 to 626 against unionizing on Friday, Feb. 14. The defeat is a major setback for the UAW which has seen dwindling membership in the last several years. The UAW’s membership has fallen from a peak of 1.5 million in 1979 to just around […]
POSCO announced the completion of a second continuous galvanizing line in Altamira, Tamauliapas, that will serve the flourishing automobile industry in Mexico. The new facility has an annual capacity of 500,000 tons and will produce galvanized steel sheet used in exterior panels of high end automobiles. Products from 2CGL will include ‘GI Ace’ and 780mPa […]
The acquisition of the ThyssenKrupp Calvert, Alabama mill by joint partners ArcelorMittal and NSSMC is expected to close during the first quarter of 2014. The company has received Department of Justice anti-trust approval and is waiting for other regulatory approvals to clear. ArcelorMittal is prohibited from looking at the customer mix and order book until […]
Steel analyst Charles Bradford of Bradford Research spoke at the Port of Tampa Steel Conference this past week. He presented a relatively upbeat analysis of the domestic steel industry. He began by referring to a recent McKinsey and Company report which basically said, “The steel industry has had it, it’s over. The industry doesn’t make […]
ArcelorMittal Flat Carbon Americas had sales of $4.9 billion in fourth quarter 2013, just slightly below sales for third quarter and up from $4.68 billion in Q4 2012. Crude steel production declined by 1.4 percent to 6.3 million tonnes q/q due to operational issues in Brazil and maintenance for Canadian operations. Steel shipments of 5.6 […]
One of the interesting tidbits that came out of the ArcelorMittal conference call last week was their intention of taking down the #7 blast furnace at Indiana Harbor for two months beginning in May. They also discussed the purchase of ThyssenKrupp which they feel will be completed by the end of March (end of 1st […]
The introduction of an aluminum F-150 pickup at the Detroit auto show has the steel industry looking hard at its advanced high strength steels (AHSS) and figuring out how to insure that AHSS is the preferred material of choice for the auto industry. SMU spoke with Ronald P. Krupitzer, vice president of automotive applications for […]
According to scrap experts, most of the domestic mills canceled their January orders at the close of business this past Friday when shipment of the past due scrap had not already been made. Cancellations are standard operating procedure by the domestic mills when they believe scrap prices will drop once the new month’s negotiations are […]
On January 14, Steel Market Update (SMU) adjusted our Price Momentum Indicator from Higher to Neutral. This means we see steel market pricing at this moment as either in transition or moving sideways over the next 30 days. With ferrous scrap prices now weakening, lead times shortening and all of the available capacity back in […]
Severstal North America announced the appointment of Dr. Prabhat (PK) Rastogi to General Manager, Business Development, Strategy and Innovation. Dr. Rastogi will be responsible for business development, market strategies, production innovation and value creation in connection with Severstal’s automotive product. “PK brings the knowledge, skills and innovative strategies our company and industry needs right now,” […]
US automotive sales were mixed in January with automakers blaming winter weather on slipping sales. January is typically a soft month for the industry and will likely not affect forecasts for 16-16.5 million light vehicle sales for 2014. Ford Motor Co. reported sales fell 7.1 percent year-over-year to 155,644 vehicles. General Motors sales plunge 12 […]
According to scrap experts, most of the domestic mills canceled their January orders at the close of business this past Friday when shipment of the past due scrap had not already been made. Cancellations are standard operating procedure by the domestic mills when they believe scrap prices will drop once the new month’s negotiations are […]
ArcelorMittal received anti-trust clearance on Wednesday, clearing a hurdle to the acquisition of the ThyssenKrupp Alabama facility. The waiting period under the Hart-Scott-Rodino Antitrust Acquisition Improvements Act (HSR) terminated on Jan. 29 providing clearance for the acquisition. Following receipt of other customary regulatory approvals, the joint purchase by ArcelorMittal and Nippon Steel & Sumitomo Metal […]
Earnings reports are accompanied by conference calls which allow us to get some insight on what the steel leaders are thinking about in the industry. SMU decided to look at the comments by AK Steel, Nucor, Steel Dynamics, and US Steel for ideas on where the steel industry is headed for 2014. All four of […]
Mark Millet, CEO of Steel Dynamics told those listening to the SDI earnings conference call that second half 2013 sheet pricing appreciation was assisted by raw material pricing (higher scrap prices) and some supply disruptions. However, the “…underlying appreciation was driven by demand.” He went on to state that “…it’s a little difficult to determine […]