Members of USW Local 1865 have ratified a new contract at AK Steel. The 42-month labor agreement covers more than 800 hourly and maintenance employees at Ashland, Kentucky Works. The new contract will take effect on March 1, 2015 and expire Sept. 1, 2018. “We are pleased that members of Local 1865 have ratified a […]
US Steel is trying to raise flat rolled steel prices as lead times on hot rolled, cold rolled and galvanized slip into the 1st Quarter 2015. The General Manager of North American Flat-Rolled Marketing at US Steel sent an internal memo to the General Managers of Sales for the mill regarding current market conditions and […]
I was advis ed today that Nucor had reduced their pricing on beams by $40 per ton in order to compete with foreign beam offers. The question then became what are the mills doing to blunt the impact of foreign steel offers of flat rolled products into the United States? As we reported on Tuesday, […]
Flat rolled steel prices continued to erode this week as buyers reported an expansion of discounted offers coupled with short mill lead times. Many steel buyers are telling Steel Market Update that their inventories are relatively high, there are new foreign offers out there at “good” prices and that they can sit back and wait […]
A judge gave US Steel Canada permission on Friday to restart its Hamilton coke oven battery. A deal was formulated to allow coke produced at the plant to be sold to parent company US Steel in the United States. US Steel spokesperson Trevor Harris told SMU the restart is limited to the currently hot-idled coke […]
With the exception of Platts, all of the other flat rolled steel indexes reported benchmark hot rolled pricing as being down $5-$9 per ton this past week. Our average also declined by $5 per ton and now sits at $637 per ton. With at least one mill offering spot hot rolled at, or below, $600 […]
The U.S. International Trade Commission (USITC) determined on Wednesday that there is reasonable indication that the US steel industry is materially injured by import of welded line pipe from Korea and Turkey. The affirmative vote means the countervailing and antidumping investigation will proceed with a preliminary CV determination due on or about January 9, 2015, […]
US Steel announced on Monday it will build a new corporate headquarters at the former Civic Arena site in Pittsburgh’s lower Hill District. The new headquarters is part of US Steel’s Carnegie Way and is expected to provide significant cost savings by housing employees from a number of locations under one roof. “As we continue […]
Last year at this time hot rolled steel prices averaged $670 per ton and were close to the peak for the year which was $680 per ton (SMU index HRC average). Lead times peaked the first week in December on all flat rolled with the exception of Galvalume. From mid-December 2013 until the middle of […]
PITTSBURGH, Nov. 18, 2014 /PRNewswire/– United States Steel Corporation (NYSE: X) today announced the executive leadership for three of the company’s newly created commercial entities. Joseph R. Scherrbaum will serve as acting vice president – Industrial Solutions, Geoff M. Turk will serve as vice president – Service Center Solutions and Lawrence W. Sutherland will serve […]
PITTSBURGH, Nov. 18, 2014 — United States Steel Corporation (NYSE: X) today announced the executive leadership for three of the company’s newly created commercial entities. Joseph R. Scherrbaum will serve as acting vice president – Industrial Solutions, Geoff M. Turk will serve as vice president – Service Center Solutions and Lawrence W. Sutherland will serve […]
US Steel announced a realignment of its reporting segments in order to meet strategic goals set forth in its Carnegie Way transformation. The North American flat-rolled segment will include creation of commercial entities to address specific markets. The realignment will take effect by January 1, 2015. “These commercial entities will put our company in a […]
The Wyoming Business Council and JR Simplot Company are hoping to revive a shuttered iron ore mine and build a $500 million iron ore concentrator and pig iron production facility in central Wyoming. The plant would produce cast pigs with a carbon content of 3.5 percent made from low grade taconite ore with an iron […]
Explanation of data sources: The broad index is published by the Federal Reserve on both a daily and monthly basis. It is a weighted average of the foreign exchange values of the U.S. dollar against the currencies of a large group of major U.S. trading partners. The index weights, which change over time, are derived […]
Steel Market Update is speaking at the Cowen & Company conference in New York City this week. On the agenda today were three former “captains of the industry” – Dan DiMicco, John Surma and Keith Busse – each a former CEO of a major steel producer, DiMicco with Nucor, Surma with US Steel and Busse […]
Occasionally we publish a piece on the state of the Eurozone because we regard the inevitable future transformation (disintegration) of this region to be of immense significance to the US steel industry. The following was written by Ambrose Evans Pritchard and published in the UK Daily Telegraph on Monday November 10th. Mario Draghi’s Efforts to […]
The Association of American Railroads reported 305,389 carloads for the week ending Nov 1, 2014, up 4.3 percent year over. Intermodal volume increased 5.9 percent y/y to 279,819 units for the highest volume ever. “America’s railroads are moving an enormous amount of freight today,” said AAR Senior Vice President John T. Gray. “In the first […]
Below is a press release issued by the American Institute for International Steel (AIIS) regarding September steel exports. Falls Church, VA. November 6, 2014. The United States’ steel exports declined slightly in September, though they remained just above their level of a year earlier. Exports dipped 1.4 percent from August to 1.03 million net tons. […]
The World Steel Association published its 2014 statistical year book this week with data through 2013. Figure 1 shows total crude steel production in the U.S. since 1880 in short tons. The peak production was 150,483,000 tons in 1973. The final total for 2013 was 95,566,000 tons, down by 2.05 percent from 97,565,000 in 2012. […]
AK Steel, US Steel, Nucor (verbal) and ArcelorMittal all made spot price adjustments this past week. A number of the smaller mills are holding back or have lead times out into 2015 and their order books are closed. Steel Market Update Price Momentum Indicator continues to point toward Neutral meaning prices could be in transition […]
For the majority of the month of October, the SMU Steel Price Momentum Indicator was referencing lower prices for the next 30 to 60 day period. At the end of the month, we revised our Indicator to Neutral due to AK Steel, US Steel and Nucor having made $20 per ton price increase announcements. It […]
US Steel announced in their earnings conference call that Carnegie Way benefits now total $495 million for 2014 due primarily to improvements in manufacturing processes, supply chain and logistics, and SG&A reductions. “While our operating difficulties in North America in the first half of the year made it difficult to see the results of our […]
Esmark Inc has confirmed its interest in acquiring all the assets of Serbian government-owned steel facility Zelezara Smederevo, a producer of steel, hot-rolled and cold-rolled products, and tin plate-coated products serving customers in Central Europe. Esmark Inc. has formed Esmark Europe to lead mill operations, finance, and commercial sales if the bid is successful. During a […]
I adjusted the SMU Price Momentum Indicator from Lower to Neutral in recognition of the attempt by the domestic steel mills to reverse the price trend and move prices higher. A Neutral indicator means prices could move in either direction (or remain stable) over the next 30 days. I understand two mills have made very […]
US Steel reports a third quarter net loss of $207 million compared to a loss of $1.791 billion during the second quarter 2014. Results include non-cash restructuring costs and $45 million in gains from sale of real estate. Adjusted net income was $325 million. Sales rose 11 percent to $4.59 billion and shipments were up […]
Statistical data out of China is always questioned for a number of reasons, not least is, “Is the data politically motivated.” Other suspicions arise because China gets their data out faster than any other major economy and the data is never revised. Figure 1 shows published data for the growth of GDP, industrial production and […]
The market believed that consolidation of the steel mills would result in a much more disciplined industry, especially regarding flat rolled steel prices. Larger steel mills and fewer players would mean less negotiating and better control of production facilities. That is what the market wanted to believe. However, it is not easy for a leopard […]
After the recent sell off of HRC futures, it appears the market has reached a critical support level with Cal 15 trading at $620. Near months aren’t much higher with Nov14 trading around $623 and Dec14 at $621. The selloff came as concerns over the global economy came to light in recent weeks. The International […]
Besides working on flat rolled steel pricing for most of the week, I have also been interviewing companies by email and over the phone to learn more about demand and how demand is holding up as we get deeper into 4th Quarter 2014. This becomes an even more important topic when considering rising inventories at […]
SMU was reading a blog post put up by Metal Miner this morning regarding the consolidation of the steel industry. The main premise of the guest article from James May of Steel-Insight out of Canada, was 81 percent of the hot rolled production in the United States and Canada is controlled by four companies: ArcelorMittal, […]