For the week ending February 27, 2016, the American Iron & Steel Institute (AISI) estimated the U.S. steel industry produced 1,692,000 net tons of raw steel, a 0.4 percent decrease over the previous week and a 0.8 percent decrease over the same week one year ago. The estimated capacity utilization rate is 72.4 percent, down […]
US Steel Canada supporters have been waiting a month for a decision by Justice Herman Wilton-Siegel on whether former parent company, US Steel, is owed $2 billion dollars debt or if that amount is an equity investment. Court hearings on the matter ended January 27 with a promise of a decision within two weeks. Trevor […]
Once a month HARDI wholesalers conduct a conference call for those member companies who are involved in the sale of galvanized sheet and coils to the mechanical contractors involved in residential and commercial construction. Steel Market Update publisher, John Packard, has been involved with the HARDI organization for many years going back to his steel […]
For the week ending February 20, 2016, the American Iron & Steel Institute (AISI) estimated the U.S. steel industry produced 1,699,000 net tons of raw steel, a 0.2 percent decrease over the previous week and a 0.4 percent decrease over the same week one year ago. The estimated capacity utilization rate is 72.7 percent, up […]
For the week ending February 13, 2016, the American Iron & Steel Institute (AISI) estimated the U.S. steel industry produced 1,703,000 net tons of raw steel, a 1.1 percent increase over the previous week but a 0.1 percent decrease over the same week one year ago. The estimated capacity utilization rate is 72.8 percent, up […]
On Sunday Steel Market Update published an article about the Carrier announcement that they would be moving their manufacturing and distribution facilities from Indianapolis, Indiana to Mexico. The announcement got the attention of Donald Trump who mentioned it during the debates on Saturday. Our article and the news also got the attention of a number […]
Figure 1 shows published data for the growth of Chinese GDP, industrial production and consumer prices through the fourth quarter of 2015. The GDP and industrial production portions of this graph are three month moving averages. The growth of GDP was 6.8 percent in the 4th quarter, and decelerating to its slowest pace since the […]
Flat rolled steel prices remained relatively range bound over the past week with only one product, cold rolled, showing any movement other than sideways. While speaking to steel buyers around the country many of the discussions centered on lead times, demand and what will the mills do next regarding steel prices. The consensus of opinion […]
For the week ending February 6, 2016, the American Iron & Steel Institute (AISI) estimated the U.S. steel industry produced 1,685,000 net tons of raw steel, a 1.7 percent increase over the previous week but a 1.2 percent decrease over the same week one year ago. The estimated capacity utilization rate is 71.9 percent, up […]
Losses keep mounting at US Steel Canada but cash reserves are keeping the company alive for now. In his 21st report, court Monitor Alex Morrison reported an operating loss of CAD$144 million for US Steel Canada in 2015 compared to a loss of $37.9 million in 2014. Shipments totaled 1.8 million tons, a year-over-year decrease […]
According to the latest data released from the US Department of Commerce and the American Iron and Steel Institute, apparent steel supply for the month of December 2015 was 7,878,660 net tons. Apparent steel supply is calculated by adding domestic steel shipments and finished US steel imports and subtracting total US steel exports. December supply […]
There seems to be little doubt that there is some strength in the cold rolled and coated products markets. The lead times are extended with ArcelorMittal being into May on galvanized according to one of their automotive service centers. We heard from a couple of the conversion mills who told us their orders books were […]
According to the AISI A7 report, total crude steel production in 2015 was 86,912,000 tons, down by 10.6 percent from 2014. Figure 1 puts this into a historical context with 130 years of data. Peak production was 150,483,000 in 1973 and in that year 26 percent was produced in open hearth furnaces, 18.4 percent in […]
Contract negotiations are continuing at Cliffs Natural Resources but still moving slowing according to an update to members by the USW. Negotiators returned to the bargaining table last week and said progress had been made on health care issues for active and retired workers. The negotiating teams will take a short break and return to […]
First, a note to our Premium level members (subscribers) we will produce another Premium supplemental issue of our newsletter for you tomorrow afternoon. The newsletter will contain the most recent CPIP (construction put in place) data. We also will release the results of this week’s flat rolled steel market trends analysis in the form of […]
US Steel Canada is officially for sale again. A press release by USSC announced the company is commencing a sale and investment solicitation process under the Companies’ Creditors Arrangement Act (CCAA). US Steel Canada is authorized by order from the Ontario Superior Court of Justice “to pursue all avenues of a sale or refinancing of […]
USW members ratified a new three year contract with US Steel on Monday. The ratification passed by a 2-1 margin and will take effect immediately. “I am extremely proud of the solidarity and the commitment to fairness that the Steelworkers showed throughout this process,” said USW International Vice President Tom Conway, who led the union’s […]
Four U.S. steel producers announced earnings this past week. During their earnings conference calls held with analysts the steel mills addressed questions/concerns regarding foreign steel being exported to the United States. The domestic mills filed trade cases against corrosion resistant steels (such as galvanized and Galvalume) as well as cold rolled and hot rolled steels. […]
US Steel told analysts this week that the company was down to 3 steelmaking facilities and 5 finishing mills as they try to right size to the market conditions. U.S. Steel conducted their earnings conference call with financial analysts on Wednesday of this week. During the call, CEO Mario Longhi and other executives with the […]
Closing arguments were heard Wednesday in the eight-day trial to determine if US Steel is owed more than $2.2 billion in debt by US Steel Canada. Lawyers for the union and province said that US Steel is calling equity investments debt as a way to recoup the cost of buying the former Stelco facilities. “What […]
Significantly lower prices and weakened demand for flat rolled and tubular products resulted in big losses for US Steel last year and the outlook for 2016 is not much better. US Steel reported a fourth quarter net loss of $999 million and a net loss of $1.5 billion for full year 2015. The company continues […]
Yesterday (Monday, January 25th) I visited the AHR Expo (ASHRAE for us old timers) in Orlando. I had not attended one of these shows for probably six years or more. This show used to be a mandatory visit for me when I was a salesman peddling galvanized steel. I remember when the Carrier Corporations, York-Borg […]
Flat rolled steel prices slowly moved higher this past week according to the revisions made to the SMU and Platts steel indexes. Benchmark hot rolled prices were rose $5 per ton on the SMU index taking our number to $405 per ton. Platts kept their $410 per ton number the same on HRC from the […]
Today is Day 4 in a scheduled six day trial to settle the question of US Steel’s claim to $2.2 billion in debt from US Steel Canada. Day 1 (Jan. 14) began with a recap of the purchase of the former Stelco steel company. Larry Brockway, a vice-president at US Steel that was involved with […]
US Steel may temporarily lay off almost 700 workers at US Steel Tubular Products-Lone Star in Houston. Employees were advised by US Steel that operations may be adjusted “due to softening market conditions.” WARN notice listed by the Texas Workforce Commission on Jan 11 shows 679 employees slated for possible layoff beginning March 16, 2016. […]
Essar Steel Algoma will begin the process of looking for a buyer or investor next month according to letters sent to suppliers by CEO Kalyan Ghosh. Under terms of the Debtor In Possession (DIP) Agreement, the company must get court approval for a “broad and investment solicitation process (SISP)” by February 1, 2016. “While we […]
According to the latest data released from the US Department of Commerce and the American Iron and Steel Institute, apparent steel supply for the month of November 2015 was 7,710,331 net tons. Apparent steel supply is calculated by adding domestic steel shipments and finished US steel imports and subtracting total US steel exports. Foreign steel […]
USW and ArcelorMittal negotiations resumed last week with hope of a possible compromise after a tentative contract was reached at US Steel. According to the latest information update from the USW, an impasse between the parties still continues concerning retiree benefits and contract language that could affect future labor agreements. “While ArcelorMittal has dropped its […]
Net imports equals imports minus exports. We regard this as an important look at the overall trade picture and its effect on demand at the mill level. Figure 1 shows that net sheet product imports on a three month moving average (3MMA) basis at 546,093 tons in November continue to be more than double that […]
AK Steel kept their press release announcing their new flat rolled steel pricing short and sweet: “West Chester, OH, January 13, 2016—AK Steel (NYSE: AKS) said today that it will increase current spot market base prices for all carbon flat-rolled steel products by $30 per ton, effective immediately with new orders.” Here is what their […]