Total light vehicle inventories fell 192,000 units from the end of November to the end of December 2013. Total automotive inventories stood at 3.4 million units at the end of December, for a day’s supply of 68 based on SAAR sales of 15.5 million units. The day’s supply at 68 is about 10 percent higher […]
In the United States approximately 60 percent of the steel produced is through electric arc furnaces (EAF) used by so-called “mini-mills.” Electric arc furnaces use primarily scrap along with pig iron or DRI (direct reduced iron) to charge the furnaces. All of the long products (rebar, bar, angles, beams) are produced through EAF technology and […]
In a rolling 12 months through November, light vehicle production (automotive) in NAFTA reached 16,093,000 units, a level not seen since May 2003. In three months through November production was up by 9.4 percent year over year. Light trucks, which include crossovers, are surging faster than cars, the year over year growth rates were 15.4 […]
U.S. Steel announced a price increase on Monday and the market appears to be cautiously optimistic as we enter the end of 2013 and look out into the New Year. The announcement itself was termed a “non-event” by one of the construction related steel mills with whom we spoke this afternoon as increases had previously […]
Planned outages and the collapse of the storage dome at Nucor Steel Louisiana negatively impacted earnings said Nucor in its fourth quarter guidance. Earnings per diluted share are expected to be in the range of $0.30-$0.40, down from third quarter 2013 earnings of $0.46 per diluted share and fourth quarter 2012 earnings of $0.43 per […]
The next three months are looking good to metalforming companies in the Dec. 2013 Precision Metalforming Association Business Conditions Report. The number of participants that forecast an improvement in economic activity during the next three months jumped to 41 percent, up from 27 percent in November. Likewise, incoming orders are expected to spike with 43 […]
Alton Steel announced the election of James Hrusovsky as CEO effective immediately. Hrusovsky, former Essar Steel Algoma CEO and a 31-year veteran of the steel industry, will succeed Charlie Linnemeyer. Prior to his career at Essar Steel, Hrusovsky was CEO for Severstal Columbus where he led a significant expansion for the company. Linnemeyer, who started […]
Horizon Steel Company, plans to build a 90,000 square foot service center facility in Bowling Green, Kentucky. The $15 million project is expected to provide 30 new full-time positions in the region. The facility will be part of a co-located operation that will span approximately 150,000 square feet in the Kentucky Transpark and will also […]
ArcelorMittal conducted a conference call with steel analysts regarding the purchase of ThyssenKrupp Steel USA steel mill. The company outlined the reasons for the purchase and addressed a number of issues of importance to the steel community. In his opening remarks, ArcelorMittal CEO, Lakshmi Mittal spelled out their reasons for making the purchase: “So firstly, […]
ArcelorMittal (AM) and their 50/50 joint venture partner Nippon Steel & Sumitomo Metal Corporation (NSSMC) reached an agreement with ThyssenKrupp AG to acquire the ThyssenKrupp Steel USA steel mill located in Calvert, Alabama. The purchase was valued at $1.55 billion for the 4.3 million tons of flat rolling capacity along with 1 million tons of […]
ArcelorMittal (AM) and their 50/50 joint venture partner Nippon Steel & Sumitomo Metal Corporation (NSSMC) reached an agreement with ThyssenKrupp AG to acquire the ThyssenKrupp Steel USA steel mill located in Calvert, Alabama. The purchase was valued at $1.55 billion for the 4.3 million tons of flat rolling capacity along with 1 million tons of […]
Steel Market Update spoke with steel analyst Charles Bradford of Bradford Research about the purchase of the ThyssenKrupp Steel USA assets by the ArcelorMittal/Nippon Steel & Sumitomo Metals Corporation joint venture. We wanted to understand the economics of the purchase as well as what will happen next prior to the closing of the deal. “ArcelorMittal […]
The anticipation over the fate of ThyssenKrupp Steel Americas is finally over with the sale of the Calvert, Alabama mill to joint venture partners ArcelorMittal and Nippon Steel and Sumitomo Metal Corporation. The $1.55 billion sale gives ArcelorMittal a firm foothold in the Southeast and in the NAFTA auto market. Nippon Steel & Sumitomo Metal […]
The Chicago Fed Midwest Manufacturing Index (CFMMI) is a monthly estimate by major industry of manufacturing output in the Seventh Federal Reserve District states of Illinois, Indiana, Iowa, Michigan and Wisconsin. It is a composite index of 15 manufacturing industries that uses hours worked data to measure monthly changes in regional activity. The three month […]
Cleveland, 14th November – The President of the United States today visited ArcelorMittal’s Cleveland facilities, where he met employees at the hot dip galvanising line and gave a speech on the economy. The President was welcomed to the plant by Lakshmi Mittal, Chairman and CEO. Speaking before the President, Mr Mittal said: “It’s a […]
Light vehicle (autos + light trucks) production surged in October, up 13.5 percent, the rolling 3 months production was up by 13.1 percent. Year over year production was up by 8.3 percent in total and the Detroit 3 made up some ground being up 10.1 percent. Light vehicle production has now exceeded the pre-recession level […]
Metalforming companies expect improved business activity for the next three months after expressing pessimism in October. The November 2013 Precision Metalforming Association (PMA) Business Conditions Report showed an uptick in the number of survey respondents who anticipate improvement in business conditions as well as improvement in new orders. Average daily shipping levels were above levels […]
Review of Manufacturing. October 31st 2013 Each month the Steel Market Update publishes a table of what we believe to be the most significant indicators of the state of the steel market and current results in the long and flat rolled sectors. We will be discussing one section of this table in detail each month, […]
It seems to be a foregone conclusion that there will be a flat rolled price increase announcement within the next few working days. Spot prices have remained firm with benchmark hot rolled averaging $665 per ton ($650-$680 range) based on our SMU index. Scrap is forecast to be up by $20 to $40 per gross […]
AM Castle, a metals and plastics distributor, reported a net loss of $6.9 million for the third quarter 2013, compared to net income of $3.2 million in Q3 2012. Consolidated net sales were $253 million down from $304 million in 2012. Metal sales in the third quarter were $220 million, a drop of 19.2 percent […]
U.S. Steel CEO, Mario Longhi told analysts this afternoon that the company will close its Hamilton, Ontario, Canada blast furnace by the end of the year. The company advised they will also close two coke batteries at U.S. Steel Gary Works (#5 & #7). The coke batteries and rolling mills at Hamilton Works will not […]
There has been great speculation and anticipation regarding the sale of the ThyssenKrupp Steel Americas steel mills since the parent company announced it was offering the plants for sale over one year ago. The Americas operations consist of the Calvert, Alabama facility as well as the CSA fully integrated slab mill with its two blast […]
SSAB Americas had sales of SEK 3,639 million ($575 million) in the third quarter of 2013 on shipments of 628 thousand tonnes (692,239 tons). Niche products accounted for 166 thousand tonnes (182,980 tons) or 26 percent of total shipments. In comparison, shipments were 16 percent higher year over year and 9 percent higher quarterly. Sales […]
Reliance Steel & Aluminum increased sales 18.9 percent to $2.44 billion in the third quarter 2013 from $2.06 billion in third quarter 2012. Tons sold were up 31.3 percent year-over-year to 1.45 billion tons. Net income was $95.1 million, down 3.1 percent from $98.1 million in the third quarter of 2012 and up 17.4 percent from […]
NLMK USA steel sales totaled 451,000 metric tons (497,141 net tons) for third quarter of 2013, an increase of 5.1 percent from second quarter and 8.7 percent from third quarter 2012. The increase was due mostly to greater US sales for hot rolled coil (HRC) and galvanized steel—275,000 tonnes (303,135 net tons) and 65,000 tonnes […]
Steel Dynamics reported a strong third quarter net income of $57 million on net sales of $1.9 billion. In comparison, SDI reported $13 million net income on net sales of $1.7 billion in September 2012, and $29 million on net sales of $1.8 billion in second quarter 2013. “Our consolidated operating income increased 64 percent […]
Automotive production, sales and inventory in NAFTA through September 2013 Based on Ward’s automotive reports, total light vehicle, (LV) production was 1,390,175 units in September, down by 3.3 percent from August. Autos were down by 5.1 percent and light trucks by 1.8 percent. A better measure of direction is the three month rolling average of […]
The Certified Steel Stud Association (CSSA) recently squared off against the Steel Framing Industry Association (SFIA) over galvanized coatings for steel stud. CSSA released a warning that G40e or G40EQ coated steel products are not a substitute for G40 coated steel studs. G40 is a hot-dipped galvanized coating (99 percent zinc) that is used to […]
Kloeckner Metals Co. announced the opening of a new light gauge flat rolled processing center at the ThyssenKrupp Steel USA plant site in Calvert, Alabama. The service center will provide toll processing for ThyssenKrupp Steel USA based on a long-term, owner-independent exclusive contract. The 100,000 square foot facility will offer slitting first and will later […]
Apparent steel use is expected to grow around 3 percent for both 2013 and 2014 says the World Steel Association in its Short Range Outlook. lobal steel demand is expected to increase to 1.475 billion metric tons in 2013, up 3.1 percent over 2012. WSA says steel use will continue its growth trend in 2014 […]