Written by: Sandy Williams Severstal has suspended plans to build a DRI facility in Trinidad & Tobago, citing a drop in profits and weak global demand. The proposed $600 million facility would have supplied DRI for the Severstal Columbus electric arc furnace. The company also canceled a planned investment of $5 billion with India owned […]
Written by: Sandy Williams This year Nucor plans to spend $280 million on its Louisiana DRI facility and approximately $260 million towards its natural gas related investments. Essar Steel Minnesota is in talks to build a joint venture DRI plant. Voestalpine and Northstar Bluescope Steel are both considering DRI facilities. Severstal just postponed a DRI […]
Written by: Sandy Williams Start up of the Esmark Yorkville cold-rolling plant is on hold waiting for “a less volatile steelmarket” according to Esmark. Esmark acquired the renamed Ohio Cold Rolling Company from defunct RG Steel along with a 50 percent interest in the nearby tin plate production plant Ohio Coatings Co. in October 2012. […]
Written by: Sandy Williams Steel buyers plan to shed excess inventory but are cautiously optimistic that business conditions are improving, according to the February ISM Steel Buyers Survey. More inventory was on hand with most buyers (71.4 percent) holding enough to cover shipping levels for 1-2 months. Compared to inventory levels a year ago, tons […]
Written by: Sandy Williams Dr. Gerhard Cromme is resigning as Chairman of the ThyssenKrupp Supervisory Board effective March 31. Cromme, 70, has held the post for 12 of his 27 years with ThyssenKrupp. The resignation has been called for by shareholders angry over the Board’s investment disaster with Steel Americas. “I want to support a […]
Written by: Sandy Williams Steel Dynamics announced that John Nolan, Vice President and General Manager of the Company’s Structural and Rail Division, has been appointed to the newly created corporate level position of President-Product Development. Nolan will be responsible for identification, development and innovation of new products for the automotive, construction and rail markets. Nolan, […]
Written by: Sandy Williams Klockner and Co. is undergoing a major restructuring program to shrink its European line to a profitable core by eliminating 60 sites, 40 of which have already been sold or closed. Klockner EBITDA before restructuring was €139 million in 2012 (down from €227 million in 2011) and €62 million after restructuring. […]
Written by: Sandy Williams Day one of the SMU Steel 101: Introduction to Steelmaking & Market Fundamentals workshop ended by rubbing shoulders with our mill hosts at a cocktail party at our hotel. This was my first opportunity to speak to the General Manager of the Severstal Columbus plant as well as a number of […]
Written by: Sandy Williams Iron ore had its biggest slide in seven weeks dropping 2.4 percent on Tuesday to $145.20 per dry metric ton (Fe 62) at the Chinese port of Tianjin (source: The Steel Index). Ore shipments out of Australia have been slowed by a series of seasonal hurricanes forcing sporadic port closures. Although […]
Written by: Sandy Williams Billowing flames, sparks careening upward like thousands of fireflies, the brilliant blue-white glow of the arc, and heat—intense heat. It is hard to adequately describe the power emanating from the electric arc furnace as one stares at it enthralled. Our Steel 101 class felt that power up close and it was […]
Written by: Sandy Williams The JP Morgan Global Manufacturing PMI slipped to 50.8 from 51.4 in January indicating a slowing in manufacturing. Global manufacturing output rose for the fourth month in a row with the U.S. leading the upward momentum. India, Mexico and Brazil also saw acceleration in production. China showed slowing in February while […]
Written by: Sandy Williams Activity in the manufacturing sector continued to improve in February according the latest Institute for Supply Management Manufacturing Report on Business. The February PMI (Purchasing Managers Index) registered at 54.2, indicating growth in the manufacturing sector for the third consecutive month since its drop below the neutral point to 49.9 in […]
Written by: Sandy Williams “Whenever you are asked if you can do a job, tell ‘em ‘Certainly I can!’ Then get busy and find out how to do it.”—Theodore Roosevelt. When I was asked to write for SMU I did exactly what Teddy suggested and every day since I’ve been learning how. With a background […]
Written by: Sandy Williams New orders of manufactured durable goods decreased 5.2 percent to $217.0 billion in January according to Department of Commerce data. The downturn in January followed four consecutive months of increase including a 3.7 percent rise in December. Transportation equipment declined three of the last four months, dropping 19.8 percent from December […]
Written by: Sandy Williams Home prices showed strong gains at the end of 2012 according to the S&P/Case-Shiller Home Price Indices. The national composite increased 7.3 percent in 2012 after surging in the second and third quarter and dipping slightly in the fourth period. The yearly indices for the 10- and 20-City Composites posted annual […]
Written by: Sandy Williams Sims Metal Management announced that Chief Executive Officer Daniel Dienst will retire at the end of June. Board Chairman Geoff Brunsdon said, “The Board would like to acknowledge the enormous contributions Mr. Dienst has made to the Company during the nine years he has been Chief Executive Officer, including; the integration […]
Written by: Sandy Williams The U.S. Supreme Court has agreed to consider whether U.S. Steel union workers can be compensated for time spent changing clothes for their jobs. Currently the collective bargaining agreement does not require compensation but workers claim the law provides for the payment even if the bargaining agreement does not. The court […]
Written by: Sandy Williams A sellers market is beginning to develop, says the National Association of Realtors, as inventory drops and prices begin to rise. Existing home sales rose a slight 0.4 percent in January to a seasonally adjusted annual rate of 4.92 million from a downwardly revised 4.90 million in December. The annual sales […]
Written by: Sandy Williams >New residential housing starts slowed in January as winter gripped the U.S. Housing starts were at a seasonally adjusted annual rate of 890,000 in January, according data released by the Department of Commerce. The January figure was 8.5 percent below the December revised annual rate of 973,000, although 23.6 percent above […]
Written by: Sandy Williams Despite a record year for sales, Olympic steel reported a disappointing fiscal year with net earnings of $2.3 million after a non-cash goodwill impairment charge of $6.6 million in the fourth quarter. In comparison, net earnings for 2011 were $25.0 million. Net sales for 2012 were a record $1.4 billion, up […]
Written by: Sandy Williams Reliance Steel reported an 18 percent drop in net income of $80.4 million in fourth quarter 2012. Net income for the year rose 17.4 percent year over year to 403.5 million. Sales of $1.89 billion for the fourth quarter were 7.1 percent lower than a year ago and down 8.1 percent […]
Written by: Sandy Williams The American Institute of Architects (AIA) released their Architects Billing Index (ABI) which is a leading economic indicator of construction activity. The Architecture Billings Index rose in January to54.2, up from a seasonally adjusted 51.2 in December and the strongest growth since November 2007. The ABI reflects the approximate nine to […]
Written by: Sandy Williams Metalforming companies are expecting a spike in business conditions during the next three months. The February 2013 Precision Metalforming Association reported that 37 percent of participants predict that economic activity will improve during the next three months (up from 32 percent in January), 55 percent believe that activity will remain unchanged […]
Written by: Sandy Williams Australian company BlueScope Steel announced earnings for its portion of North American segment, North Star BlueScope Steel, of $33 million EBIT for the first half of FY2013 ending December 31, 2012—a 65 percent improvement over the first half of FY2012. The North Star BlueScope Steel is a 50-50 venture between BlueScope […]
Written by: Sandy Williams The Arkansas Senate and House questioned a panel of economic development and finance officials last week on plans for the $1.1 billion Big River Steel project in Osceola, Ark. The meetings were a preliminary step in legislature approval of a $125 million bond issue for the proposed steel plant. The state’s […]
Written by: Sandy Williams The booming business in natural gas drilling is causing a flurry of new production facilities for the manufacture of seamless OCTG (oil country tubular goods) pipe in the United States. Most recently, Tenaris SA, a Luxembourg-based producer of steel pipes for the oil and natural gas industry, announced plans to build […]
Written by: Sandy Williams After six months of decline, the Empire State Manufacturing Survey business conditions index rose into positive territory in February. The index climbed 18 points to register 10—the highest level since July 2012. New orders picked up, rising 20 points to 13.3—the highest level since summer 2011. Shipments increased sixteen points to […]
Written by: Sandy Williams General Motors nearly doubled its fourth quarter earnings while posting big losses in Europe. GM reported fourth quarter earnings of $898 million, up from $468 million in the same period in 2012 due in part to a variety of gains from special items. A number of one-time accounting gains and losses […]
Written by: Sandy Williams John Deere earnings set a record in the first quarter of 2013, topping out at $650 million with a spectacular rise in earnings per share of 27 percent. John Deere net sales of the worldwide equipment operations rose 11 percent in the first quarter of 2013 to $6.793 billion. John Deere […]
Written by Sandy Williams Essar Steel Minnesota LLC announced it will supply 3.5 million metric tonnes of standard and fluxed iron ore pellets annually to ArcelorMittal North American operations. The agreement is for a ten year period and will commence during the second half of Essar’s fiscal year ending March 31, 2014. Essar Steel Minnesota, […]