Steel Mills
July 22, 2014
Reaction to the Severstal Sale of Dearborn and Columbus
Written by John Packard
On Monday, July 21, 2014 OAO Severstal announced the sale of their two steel mills located in the United States for $2.325 billion. The two mills, Severstal Dearborn and Severstal Columbus were purchased by AK Steel and Steel Dynamics (SDI), respectively.
The acquisition of the Severstal assets by two existing steel suppliers is being touted as a positive sign for the steel industry. Much like the purchase of the ThyssenKrupp Calvert, Alabama operation by ArcelorMittal Nippon Sumitomo last year, by the end of this calendar year there will be one less competitor in the marketplace. Fewer competitors reduces the opportunities for buyers to pit one mill against another and should result in firmer flat rolled steel pricing and less price volatility throughout the year.
