We include here an abridged statement from the IMF that was released last week and in which the commodity situation looms large. Followed by our Steel Market Update data analysis and comments about the future of global and domestic steel demand through 2020. Transcript of the World Economic Outlook Press Conference Good morning. I have […]
Our next Steel 101: Introduction to Steel Making & Market Fundamentals workshop will be held in the Columbus, Mississippi area on January 19 and 20, 2016. This workshop will include a tour of the SDI Columbus steel mill. We are working on hotel information right now and hope to have the hotel selected by early […]
Late on Friday, a Canadian judge ruled U.S. Steel could sever ties with U.S. Steel Canada and that the Canadian facility would to forward as a new entity. The judge also ruled in favor of U.S. Steel as he permitted the company to suspend health care benefits to 20,600 pensioners as well as property taxes. […]
A debate has begun as to when flat rolled steel prices will bottom and begin to reverse course. Part of that dialogue is what will supply look like should US Steel go through with balancing their production by temporarily taking down their Granite City Works. This would be on top of the trade suits which […]
The Ontario Superior Court has reserved judgment on a plan by US Steel Corporation for the company and US Steel Canada to “go their separate ways.” Justice Herman J. Wilton Siegal said it is one of the toughest decisions he has had to make from the bench and will issue a summary of his decision […]
Cliffs Natural Resources has terminated its iron ore supply agreement with Essar Steel Algoma alleging Essar made multiple and material breaches under the agreement. “While the agreement has been terminated, Cliffs remains open to discussing supplying Essar with pellets on commercially reasonable terms consistent with a just-in-time iron ore supply arrangement,” said Cliffs in a […]
US Steel announced on Tuesday that it is examining a possible consolidation of its North American flat rolled operations and may idle steelmaking operations and most finishing operations at Granite City. US Steel said it routinely adjusts production to align with market fluctuations. The potential consolidation is a result of challenging global market conditions, including […]
U.S. Steel Canada will be in court Wednesday and Thursday presenting its arguments for suspending pension contributions and property tax payments. The company will also ask for an extension of CCAA protection. Parent company US Steel has said it will not include US Steel Canada in any bids for 2016 automotive contracts and plans to […]
I, Hillary Clinton, Jeb Bush and a number of steel people are all in Davenport, Iowa enjoying the warmer than normal weather and great conditions to do a mill tour which is exactly what we did this afternoon (without Hillary and Jeb). I want to thank everyone at SSAB for their hospitality and for doing […]
Flat rolled steel prices have been slipping on a regular basis for a number of months. This has created a market where buyers expect lower prices each time they order steel, even if there is only a week or two between orders. This tends to keep order sizes modest and develops a feeding frenzy between […]
The USW updated the membership on Monday after returning to the bargaining table with US Steel in Pittsburgh. The two sides met for several hours to discuss a wide range of issues including active and retiree health care, contracting out and health and safety. “While significant differences remain on each of these issues, we believe […]
All the focus has been on labor talks between the USW and US Steel and ArcelorMittal, but there are several other USW contracts that are up for renewal such as Cliffs Natural Resources and Alton Steel. Alton Steel, an SBQ steel producer located in Alton, Ill., is represented by USW Local 3643. The contract agreement […]
Mediation at US Steel Canada began last Thursday to try to resolve the issues that have plagued the CCAA protected entity. The mediation will address the consider the restructuring and sale of US Steel Canada, US Steel’s claim that it is owed $2.2 billion by USSC, and US Steel’s decision to shift 15,000 tons of […]
All the focus has been on labor talks between the USW and US Steel and ArcelorMittal, but there are several other USW contracts that are up for renewal such as Cliffs Natural Resources and Alton Steel. Alton Steel, an SBQ steel producer located in Alton, Ill., is represented by USW Local 3643. The contract agreement […]
US Steel is planning a full idle of the Keetac taconite plant in Keewatin, Minn. WARN notices have been issued to workers and the layoffs could commence on or after Oct. 11. Keetac was idled In May, laying off 412 workers, but about half of those were recalled last month for repair work. A spokesperson […]
We will be in Iowa next week for one of our Steel 101: Introduction to Steel Making & Market Fundamentals workshops. We are looking forward to working with SSAB again, as we did a workshop in Mobile, Alabama and toured their Alabama facility. This is our first trip to Iowa. We are working on ironing […]
Flat rolled steel buyers reported a weakening flat rolled steel market this week. Large buyers are now able to buy spot hot rolled at $410-$420 per ton with medium sized buyers seeing prices closer to $420-$440 per ton. We are seeing cold rolled and coated products as doing a little better as they have been […]
Steel Market Update participates in a monthly steel conference call with HARDI wholesalers who supply galvanized sheet and coil products to the HVAC mechanical contractors across the United States and Canada. The wholesalers also supply other products such as air conditioners, furnaces and many other products to companies working on residential, multi-family and commercial construction […]
In August, vehicle sales reached a new recovery high of 17.8 million units on a seasonally adjusted annualized basis. This was the highest pace since July 2005, when incentives caused sales to surge. The August sales figure was particularly driven by light trucks which increased from 9.7 to 10.1 million units annualized. Autos fell from […]
We finally got our Flat Rolled Steel Service Center Apparent Excess/Deficit Inventory forecast model back on track. As we mentioned last month, SMU had been operating under a much more optimistic frame of mind and this past month we pulled back on our expectations and by doing so we came very close to nailing both […]
Labor negotiations continue to pause at US Steel, ArcelorMittal and ATI. The USW bargaining committee has been holding meetings at US steel locations to review the union’s most recent proposal and the status of negotiations. “Though there has been no significant progress to report on bargaining [with US Steel] in recent days, talks will continue, […]
U.S. Steel Canada is seeking a court order that will allow it to continue the restructuring process beyond this year. Without the order, the company says it would have to cease operations at the end of 2015. “With a Court Order we can preserve work and meet obligations to approximately 2,200 employees and continue to […]
Once one of the largest corporate giants in the United States (if not the world), United States Steel (USS) continues to shrink its workforce as demand for its products shrink. SMU has learned that an unknown number of white collar workers have been advised that they will be losing their jobs. USS Spokesperson Courtney Boone […]
Mediation may be the solution to the controversial issues between US Steel and stakeholders at US Steel Canada. Former Ontario Superior Court associate chief justice Douglas Cunningham will preside over a three-day session scheduled to begin next week. “The mediation shall address the feasibility of a comprehensive agreement among the parties,” wrote Superior Court Justice […]
It appears that very slowly steel buyers are slowly starting to come to a realization that there may be a lockout at US Steel and possibly ArcelorMittal as well. As many of you know, these two mills are not huge players in the spot markets so the immediate impact may be slightly muted should one […]
The USW bargaining committee for US Steel is heading home according to a Sept. 14 update by the USW. Committee members will meet with local membership to discuss the status of ongoing negotiations with the US Steel. “While we have made some significant progress this summer on some important issues, we remain far apart on […]
Over the weekend ArcelorMittal walked away from the negotiating table with the United Steelworkers. The question now becomes, if the two sides are committed to their positions – especially on health care coverage and worker contributions (there are currently none)—will there be a lockout? The union will not strike because they are being asked to […]
ArcelorMittal USA has walked away from the bargaining table following submission of a proposal by the USW that “meets our members’ needs and protects benefits.” The union called the move by management “disappointing but not surprising.” The negotiating committee is returning to the plants and has scheduled informational meetings Tuesday in Weirton at 3 p.m. […]
US steel pipe makers were surprised by a Sept. 2 US Court of International Trade decision calling for a reconsideration of profit calculations on imports of OCTG steel pipes from South Korea. South Korean producers complained that the duties set were too high and that proper procedures were not followed when determining duties. The Dept. […]
US Steel and the USW are continuing efforts to hammer out a deal at the bargaining table. In a Sept 10 update the USW said negotiations were progressing slowing with progress on some significant issues but with “unrealistic and unacceptable demands for concessions” on others. Unacceptable to the union is a two tier plan that […]