Steel Mills
September 16, 2014
Consolidation of the Flat Rolled Steel Industry
Written by John Packard
On Monday, Nucor announced their intention to acquire Gallatin Steel and its approximately 1.8 million tons of hot rolling capacity. On Tuesday, AK Steel and Steel Dynamics (SDI) completed the purchase of the Severstal North America assets. The biggest pieces of the Severstal deal are the Dearborn steel mill, which went to AK Steel, and the Columbus steel mill, which went to SDI. Also on Tuesday, US Steel Canada announced a “restructuring” of the Hamilton and Lake Erie mills to be completed by the end of 2015.
These events are sparking the interest of the flat rolled steel community as steel buyers and sellers of hot rolled, cold rolled, galvanized and Galvalume steels ask themselves what will consolidation of the industry bring?
