Written by: Sandy Williams ArcelorMittal outlined a new management savings target of $3 billion by the end of 2015 by improving the reliability, productivity and energy efficiency of its blast furnaces and mills and shifting to low-cost U.S. gas. The company has already streamlined a number of assets though an aggressive restructuring plan in the […]
Written by: Peter Wright Automotive production, inventory and sales; February 2013. Within NAFTA, the Detroit three lost production share in February compared to February last year, dropping from 52.1 percent to 51.5 percent. Performance amongst the three varied wildly with GM and Chrysler loosing 2.2 percent and 0.8 percent respectively as Ford gained 2.1 percent. […]
Steel Market Update (SMU) has been speaking to a number of service centers regarding their spot sales and especially those sales which are made between service centers or brokers. A number of service centers have been commenting about their spot warehouse business being off over the past three months. Lisa Goldenberg of Delaware Steel told […]
Written by: Sandy Williams Nucor is expecting shares to drop by half in the first quarter of 2013, falling to $0.20 to $0.25 per diluted share from $0.43 per diluted share in the fourth quarter of 2012 and $0.45 per diluted share in first quarter 2012. Weak performance in sheet steel offset by improved profitability […]
Written by: Sandy Williams Dr. Gerhard Cromme is resigning as Chairman of the ThyssenKrupp Supervisory Board effective March 31. Cromme, 70, has held the post for 12 of his 27 years with ThyssenKrupp. The resignation has been called for by shareholders angry over the Board’s investment disaster with Steel Americas. “I want to support a […]
Written by: Sandy Williams Steel Dynamics announced that John Nolan, Vice President and General Manager of the Company’s Structural and Rail Division, has been appointed to the newly created corporate level position of President-Product Development. Nolan will be responsible for identification, development and innovation of new products for the automotive, construction and rail markets. Nolan, […]
Written by: Sandy Williams Klockner and Co. is undergoing a major restructuring program to shrink its European line to a profitable core by eliminating 60 sites, 40 of which have already been sold or closed. Klockner EBITDA before restructuring was €139 million in 2012 (down from €227 million in 2011) and €62 million after restructuring. […]
Question is can TK get two or more mills in a bidding war? Our sources advise SMU that the binding bids for the ThyssenKrupp Americas plants (Calvert, Alabama and CSA in Brazil) – the ones which truly count – are to be submitted by the end of this week. There are a number of prospective […]
Written by: Sandy Williams Reliance Steel reported an 18 percent drop in net income of $80.4 million in fourth quarter 2012. Net income for the year rose 17.4 percent year over year to 403.5 million. Sales of $1.89 billion for the fourth quarter were 7.1 percent lower than a year ago and down 8.1 percent […]
Steel Market Update received the following information from an ArcelorMittal spokesperson this evening: On February 19, 2013, the United States Patent and Trademark Office (USPTO) posted a Notice of Allowance of a re-issue of ArcelorMittal pioneer patent US 6 296 805 on aluminum pre-coated steel product for hot stamping, worldwide known as Usibor®, confirming its […]
Written by: Sandy Williams The Arkansas Senate and House questioned a panel of economic development and finance officials last week on plans for the $1.1 billion Big River Steel project in Osceola, Ark. The meetings were a preliminary step in legislature approval of a $125 million bond issue for the proposed steel plant. The state’s […]
With scrap prices taking a bit of a tumble during the month of February – which did not lend a helping hand to the domestic mills who wished to raise prices – all eyes are now already focused on March. What will March bring for the industry? Will the month come in like a lion […]
In one corner we have ArcelorMittal scratching and clawing and trying to hold on to at least a portion of their price increase. One week ago they were trying to collect $650. As the week progressed the number slipped a bit. This week…well, it slipped some more. In the other corner we have a group […]
Written by: John Packard Steel Market Update did not move our Price Momentum Indicator out of Neutral where we have been “stuck” for the past 10 – now going on 11 weeks. The market lacks clear direction – or maybe a better way to view it is the market lacks personality. This is perhaps best […]
Even as prices “firm” a bit from where they were one week ago, our SMU Price Momentum Indicator remains stuck in Neutral for the 10th consecutive week due to the following factors. We always prefer to give the domestic mills an opportunity to sell their price increases into the marketplace, so we automatically move to […]
Written by: Sandy Williams One of the biggest drivers of steel usage – particularly galvanized steel – is in the automotive segment of the industry. The automotive industry has been helping keep the steel industry afloat since the recession hit and each year since 2009 the industry has both sold and produced more cars and […]
Written by: Peter Wright Raw steel production in 2012 was 97.8 million tons, up by 3.5 million tons from 2011. Steel mill shipments direct to the construction industry in 2012 were 15.6 million tons, (Figure 1). Shipments from service centers and converters to the construction industry are not classified but by proportion are about 12 […]
Steel Market Update likes to review the transcripts of the earnings conference calls between analysts and the steel mills to see what we can glean from the comments being made by the top executives at the mills. We found a number of items of interest in the U.S. Steel conference call. USS Running at 90% […]
As if the south is not already flooded with flat rolled steel mills, Arkansas Governor Mike Beebe and Big River Steel CEO John Correnti announced earlier today that if the bonds are approved by the Arkansas legislature a new $1 billion steel mill will be built in Arkansas. Details were lacking regarding the type of […]
Written by: Sandy Williams Steel Dynamics doubled its fourth quarter earnings from last year. Net income was $60.57 in fourth quarter 2012 compared to $30.20 million in 2011, and $13 million in third quarter 2012. Results included a positive tax adjustment of $16 million. Steel shipments for the quarter dropped slightly from 1.464 million tons […]
Written by: Sandy Williams AK Steel reported net loss of 230.4 million for the fourth quarter 2012 compared to a net loss of 193.9 million in fourth quarter of 2011. Results include a pre-tax pension corridor charge of $157.3 million and a non-cash income tax charge of $96.4 million. Excluding these charges AK Steel […]
Written by: Sandy Williams Metal forming companies are expecting a spike in business conditions in the next three months according to survey data released Wednesday by the Precision Metalforming Association (PMA). Survey data shows 32 percent of participants are expecting conditions to get better in the next three months (up from 22 percent in December) […]
SMU has been asked about the status of the negotiations regarding the sale of the ThyssenKrupp Steel Americas assets. This includes ThyssenKrupp Steel USA and their sister facility in Brazil which produces slabs – CSA. We understand the due diligence process continues and a number of mills have been through both facilities. Based on SMU […]