SMU sources advised us on Wednesday that the steelmaking operations at U.S. Steel Great Lakes (Ecorse) in Michigan had begun. This afternoon, US Steel confirmed that the start-up process was underway with no further elaboration or comment. We anticipate that the mill will begin making prime steel within a few days to a week. Our […]
We have been getting mixed messages regarding the Ecorse or USS Great Lakes steelmaking operations. Our sources have been advising us that there have been plans to bring the furnaces and #2 BOP back up over this past weekend (did not happen) and then again today (still not up). Other sources close to the situation […]
The Broad Index value of the US $ has been gradually strengthening for 18 months (Figure 1), which favors imports to the US and depresses exports. See explanation at the end of this piece. Table 1 shows the number of currency units that it takes to buy one US $ and the percent change in […]
Steel Market Update conducted our early May flat rolled steel market survey this week and the results are raising some questions as to whether the tightness in supply is beginning to abate. We found hot rolled lead times as shrinking half a week and cold rolled a little more than what we had reported from […]
More than 200 Ohio steel workers and supporters gathered at a rally outside US Steel Lorain Tubular Operations on May 5 to urge the federal government to protect the Northeast Ohio steel industry from unfair foreign competition. “Northeast Ohio’s steelmakers and workers can compete against anyone in the world—when given access to a level playing […]
You can expect to begin to read a lot of articles calling for prices “peaking” or about the subject of where do prices go from here. The expectation is that prices will move lower and everyone will have an opinion or theory as to why this will happen. Others will make the case for sideways […]
When Nucor announced their earnings on April 24th they held a conference call with analysts to discuss their business and to make statements about their company, the markets they serve and about the economy in general. John Ferriola, Nucor’s Chairman, CEO and President, provided an opening statement during which he made the following remarks regarding […]
April turned out to be a month where supply disruptions squeezed the life out of non-repentant steel buyers: flat rolled steel buyers who had run their inventories too lean or who hesitated when U.S. Steel Great Lakes went down, only to be ambushed by steelmaking curtailments at USS Gary Works (and elsewhere) due to iron […]
The following article is a continuation of our Steel Buyers Basics series written by Mario Briccetti. Mario is Principal of Briccetti & Associates, a Supply Chain consulting firm, and can be reached at Mario@mbriccetti.com In my series of articles, I have stressed that buyers should have the best information possible in order to effectively negotiate pricing […]
The following article published April 13, is one that we would normally just provide to our Premium Level members. We thought that those who have Executive level and Monthly membership would be interested in some of the detail we are providing our Premium Level members. If you have questions about Premium Level membership please feel […]
“We weathered not only the economic storm with five years of losses but also the first quarter’s extreme weather,” was one of the opening remarks by Executive Vice President & CFO David Burritt in the US Steel Conference Call on Thursday. Weather played a huge part in operations at US Steel in the first quarter. […]
Steel Market Update continuously is in conversation with flat rolled steel buyers from around the country. We have noticed a growing nervousness within the steel community as the buyers grapple with ever higher steel prices and extended lead times. In some cases the lead times on foreign material are not much more than what the […]
US Steel reported a net income of $52 million for the first quarter of 2014 on net sales of $4.4 billion, compared to net income of $270 million (adjusted net income of $38 million) in fourth quarter 2013. Shipments for the quarter totaled 4.1 million tons. Flat rolled steel sales operating income in first quarter […]
Steel Market Update has been carefully watching the progress of iron ore shipments to U.S. Steel Gary Works. Earlier this month, US Steel reported the curtailment of steelmaking operations at the Gary Works plant. The Gary steel mill is the largest production facility for US Steel with four blast furnaces and two BOP’s with three […]
Based on an article published in the Hamilton Spectator we have learned that US Steel intends to restart the coke batteries at Nanticoke in Hamilton, ONT, Canada starting October 1st of this year. The steel mill recently reopened this past September after a lock out in April 28th, 2013 over demands for contract changes. The […]
With the various flat rolled indexes reporting hot rolled pricing approaching $680 per ton in the mill spot market we are quite close to the $685 announced by Nucor on April 4th and matched by a number of the domestic steel mills. The question now is will the mills attempt to move prices up to […]
For our plate customers, SSAB announced a $40 per ton plate price increase effective immediately. We will see if it sticks in the marketplace. We have a couple of minor bugs and tweaks we are working out of our systems and then we will release our Managing Price Risk II: Strategies & Execution workshop for […]
Once per month, Steel Market Update provides a flat rolled service center inventory forecast for our Premium Level members. We thought in light of the recent numbers released by the Metal Service Center Institute (MSCI) to see how our forecast for April compared with the actual figures compiled by the MSCI. As indicated in our […]
Flat rolled steel prices continue to be firm as supply issues haunt the northern steel mills and lead times remain extended at most mills throughout the eastern United States and Canada. US Steel has issues with receiving raw materials into their Gary Works facility which has slowed steelmaking operations to approximately 50 to 75 percent […]
AK Steel CEO James Wainscott, in the company’s earnings conference call with analysts, reported that their blast furnaces were running at reduced capacities due to the ice problems on the Great Lakes. US Steel has been upfront by reporting their Gary Works steelmaking operations are running at less than capacity as they struggle to get […]
Earlier today, Steel Market Update (SMU) participated in the monthly galvanized steel with members of HARDI. The last conference call was held the day after ArcelorMittal has announced the first of two price increases during the month of March (Galvanized base of $39.50/cwt). The purpose of today’s call was to discuss what has been happening […]
For the week ending April 19, 2014, the American Iron & Steel Institute (AISI) reported that the U.S. steel industry produced 1,808,000 net tons (NT) of raw steel, a 1.3 percent increase over the previous week but a 1.6 percent decrease over the same week one year ago. The estimated capacity utilization rate is 75.2 […]
We learned today that ArcelorMittal will be taking down their #7 blast furnace at Indiana Harbor for two months: June & July 2014 (scheduled maintenance). The #7 furnace is capable of producing up to 11,500 tons of molten pig iron per day when ready at full capacity. Our assumption is US Steel Gary Works should […]
Steel Dynanics CEO Mark Millett and other officers of the steel mill provided their review of the company’s first quarter earnings as well as their insights into the various markets they serve as well as the challenges and opportunities they see in front of them. SMU found one comment interesting as Mr. Millett feels there […]
Ice coverage on the Great Lakes is beginning to subside with 36.7 percent coverage reported by NOAA Great Lakes Environmental Research Laboratory as of April 19. Ice persists, however, in Lake Superior and the northern sections of Lake Michigan and Lake Huron. Ice continues to clog the locks through Sault Ste. Marie. It is the […]
US Steel Gary Works is not alone as the mill limps along on two of its blast furnaces operating at reduced capacities due to a lack of raw materials. According to a US Steel spokesperson nothing has changed over the past five or six days as the mill waits for further shipments coming from Northern […]
Severe winter conditions negatively impacted Steel Dynamic’s first quarter earnings causing a 25 percent drop in consolidated operating income as compared to the previous quarter. SDI reported net income of $39 million for first quarter 2014, on net sales of $1.8 billion, down from $55 million on net sales of $1.9 billion Q4 2013. Steel […]
All of the current production issues are relegated to the northern fully integrated steel mills. One of our service center contacts laid out the production scenario and how it is impacting the other northern steel producers: “The Great Lakes outage, and then accident during repair, and the Gary reduction in output is the important factor […]
The convoy of freighters headed to Minnesota under US and Canadian Coast Guard escort arrived safely on Monday morning. The ships dispersed to begin loading iron ore pellets and to queue up for the return convoy east across the Great Lakes to the mills. USCG Mackinaw is expected to depart Duluth this afternoon to escort […]
First, our questions posed to U.S. Steel remained unanswered as we reached the end of the day today. The last we heard they were running two blast furnaces at reduced capacities for each at Gary Works. It is not known exactly how many tons per day of pig iron or steel are being produced. Iron […]