It is a good time to be a steel producer. Both Steel Dynamics and Nucor are expecting record earnings for the second quarter of 2021 supported by strong demand and unprecedented steel prices. And U.S. Steel expects second quarter adjusted EBITDA more than double that in the first. SDI expects earnings to be in the range […]
Steel prices will correct sharply as supply catches up with demand, potentially falling back to an average of $575 per ton ($28.75 per cwt) in 2022, according to one leading industry analyst. “This too will pass,” was the title chosen by Timna Tanners, metals and mining analyst at Bank of America, for her SMU Community […]
U.S. Steel wants to make Big River Steel the leader in non-grain-oriented electrical steels (NGOES). To that end, the Pittsburgh-based integrated steelmaker will invest $450 million at Big River’s steel mill in Osceola, Ark., to target the growing demand from the electric vehicle market. Funded entirely from cash generated at Big River, the NGOES expansion […]
U.S. Steel has agreed to sell its Transtar LLC railroad subsidiary to an affiliate of Fortress Transportation and Infrastructure Investors LLC (FTAI) for $640 million. The Pittsburgh-based steelmaker said it expects the deal to close in the third quarter of this year pending customary closing conditions and certain regulatory approvals. Money from the sale will […]
ArcelorMittal Mexico plans to start up its new hot strip mill in Lázaro Cárdenas in Mexico’s Michoacán state in the fourth quarter of this year, a company spokeswoman said. The hot strip mill cost $1 billion and is expected to have annual capacity of 2.75 million tons per year (tpy), according to an ArcelorMittal press […]
Privately held Canadian steelmaker Algoma Steel has agreed to be taken over and taken public in a deal valued at as much as $1.7 billion, the company said. Proceeds from the initial public offering (IPO) might result in the Sault Ste. Marie, Ontario-based company becoming the latest producer to switch from integrated to electric arc […]
Much attention has been paid to how much new electric-arc furnace (EAF) flat-rolled steel capacity is being added to the North American market. Less has been written about how many tons of integrated steelmaking capacity have been taken out. An analysis by Steel Market Update indicates that the latter figure is perhaps equally significant. It […]
Much attention has been paid to how much new electric-arc furnace (EAF) flat-rolled steel capacity is being added to the North American market. Less has been written about how many tons of integrated steelmaking capacity have been taken out. An analysis by Steel Market Update indicates that the latter figure is perhaps equally significant. It […]
Ah, remember the good old days… In this month’s galvanized steel conference call with HARDI wholesalers, one of the manufacturing companies discussed the frustrations of buying foreign steel, issues with late deliveries and then difficulties moving the steel from the port to his manufacturing facilities. Traders expressed frustrations related to freight issues (ship and truck). […]
Ah, remember the good old days… In this month’s galvanized steel conference call with HARDI wholesalers, one of the manufacturing companies discussed the frustrations of buying foreign steel, issues with late deliveries and then difficulties moving the steel from the port to his manufacturing facilities. Traders expressed frustrations related to freight issues (ship and truck). […]
A coalition of U.S. steel industry lobbying groups and the United Steelworkers (USW) union want the Biden administration to keep Trump-era Section 232 tariffs and quotas on imported steel in place. The groups say the tariffs – rolled out in March 2018 on national security grounds – are necessary for the survival of the domestic […]
“It’s a miserable boat, but at least we are all in this together.” Large manufacturing company A new hole in the boat today…NLMK USA lost their Farrell, Pa., hot strip mill for one to two weeks. Price becomes irrelevant when your customers need product and there is nowhere else to go. That is what one […]
“It’s a miserable boat, but at least we are all in this together.” Large manufacturing company A new hole in the boat today…NLMK USA lost their Farrell, Pa., hot strip mill for one to two weeks. Price becomes irrelevant when your customers need product and there is nowhere else to go. That is what one […]
Canadian steel producer Stelco is seeing the impact of its upgraded smart blast furnace, reporting production records and higher profit in the first quarter due to higher steel prices and increased value-added shipments of cold rolled and coated products. Compared to the previous quarter, revenue increased 57%, shipments jumped 38% and operating income soared a whopping […]
In a surprise announcement, U.S. Steel said it is canceling the endless casting and cogeneration project at Mon Valley Works. The company has already spent $170 million on the $1.3 billion project. “This is not the end of Mon Valley,” President and CEO David Burritt emphasized during the first quarter earnings call on Friday. The […]
U.S. Steel swung to a profit in the first quarter on higher steel prices and strong results from electric-arc furnace (EAF) producer Big River Steel. The Pittsburgh-based steelmaker recorded a $91-million profit in the first quarter of 2021 versus a $391-million loss in the same quarter of 2020 on revenue that jumped 33.1% to $3.66 […]
When I started Steel Market Update in August 2008 and I began to look at steel prices, I did so from a different viewpoint than the indexes that already existed. Having just completed a 31-year career in selling flat rolled steel, I believed what was most important for steel buyers to understand was the range […]
Integrated steelmaker U.S. Steel Corp. announced plans to become carbon neutral by 2050, on top of its existing goal to reduce greenhouse gas emissions intensity by 20% across the company’s global footprint by 2030. The use of electric-arc furnaces (EAFs) and other advanced technologies will be crucial to achieving such significant carbon emission reductions, the […]
Hot-rolled coil lead times at some mills are well into June, so steel buyers have to ask themselves now whether a year-long upswing in prices is sustainable. In short, can hot-rolled coil prices continue their record run upward? First a Look Back at Where We’ve Been Steel Market Update’s average hot-rolled coil price was $1,340 […]
Swedish steelmaker SSAB and automaker Volvo have teamed up to make what they hope will be the first vehicles made from fossil-free steel. Volvo plans to begin production of concept vehicles this year using fossil-free steel produced by SSAB, which is pioneering a hydrogen-based steelmaking process. Small-scale serial production will begin in 2022, and mass […]
Zekelman Industries has completed the exterior construction of its new rolling mill in Blytheville, Ark. The 515,000-square-foot facility, located next to Zekelman’s Atlas Tube, will be the largest continuous electric resistance welding (ERW) mill in the world and is expected to be operational by September 2021. The mill will be able to roll HSS from […]
Former Big River Steel chief commercial officer Keith Shuttlesworth has left the company, according to market participants. U.S. Steel declined to confirm Shuttleworth’s departure, noting that it does not per policy comment on personnel matters. “From the beginning of Big River Steel becoming a part of U.S. Steel, the management of both companies has been […]
NOTICE: NO SMU PUBLICATION ON SUNDAY, APRIL 4 DUE TO EASTER HOLIDAY Imports are coming. We are watching galvanized carefully as automotive production is being reduced due to the chip shortage, and we are seeing higher volumes of galvanized imports coming in. March 2021 license data is showing 240,000 net tons of galvanized, which is […]
Imports are coming. We are watching galvanized carefully as automotive production is being reduced due to the chip shortage, and we are seeing higher volumes of galvanized imports coming in. March 2021 license data is showing 240,000 net tons of foriegn galvanized imports, which is up 55,000-65,000 tons above the levels seen over the prior […]
U.S. Steel introduced a new sustainable product line, verdeX, at the Ceres Conference 2021 last week. The advanced high-strength steel can be produced with only one-fourth of the carbon dioxide emissions previously required, the company claims. “We know that the urgency of the climate crisis requires more from all of us,” said U S. Steel […]
In the famous words of Isaac Newton, “what goes up must come down.” While he was not referring to steel prices per se, the sentiment still holds true. Steel tags can’t stay at record highs indefinitely. Supply will eventually catch up with demand. What happens then? Will prices see a sharp correction or a gradual […]
In the famous words of Isaac Newton, “what goes up must come down.” While he was not referring to steel prices per se, the sentiment still holds true. Steel tags can’t stay at record highs indefinitely. Supply will eventually catch up with demand. What happens then? Will prices see a sharp correction or a gradual […]
U.S. Steel expects a solid first quarter thanks to firm demand and as record high flat-rolled steel prices flow through to its bottom line. “Strong market conditions and our well-timed acquisition of Big River Steel are allowing us to drive significant earnings growth,” U. S. Steel President and Chief Executive Officer David B. Burritt said […]
By CRU Senior Analysts Ryan Smith and Ryan McKinley, from CRU’s Steelmaking Raw Materials Monitor Steel Market Update is pleased to share this Premium content with Executive members. For information on upgrading to a Premium-level subscription, email Info@SteelMarketUpdate.com. The need for virgin iron units in the U.S. market is rising as new electric-arc furnace (EAF) […]
Voestalpine has temporarily halted production as its hot-briquetted iron plant in southern Texas, the company said. “Our HBI plant in Texas experienced a temporary shutdown and made the decision to continue the shutdown,” a spokeswoman for the Austrian steelmaker said in an email to Steel Market Update on Feb. 18. The company made the decision […]