ThyssenKrupp Steel Americas Sale Negotiations Continue

ThyssenKrupp AG has told the media that reports of them not selling the Steel Americas assets and that they may keep the facilities are erroneous. Steel Market Update (SMU) understanding of the current negotiation process is CSN is the leading company in negotiations. The most recent development has CSN purchasing the steel mill in Calvert, Alabama operation only. Our sources are advising SMU the suggested purchase price is for a little more than $1.5 billion.

The issues for both ThyssenKrupp AG and CSN are the new buyer (CSN) is short slabs and would need to purchase them on the open market in order to operate the Alabama facility. CSN currently can produce approximately 5.2 million metric tons of slabs at their existing mill in Brazil.  However, the Brazilian steel market has seen close to 20 percent in price increases this year and the total production at the CSN facility is dedicated to their domestic markets.