Steel earnings calls began this last week and all of them reference the downturn in the oil industry and its effect on production. Low oil prices, overcapacity, and resulting weak demand for OCTG products continues to force firms to adjust output and workforce. Vallourec Star Steel announced this week that it will begin a third […]
EVRAZ North America produced 1.999 million tonnes (2.2 million net tons) of crude steel in 2014, down 8.8 percent from the total in 2013. Crude steel production increased by 5.7 percent to 528,000 tonnes (582,000 tons) in the final quarter of 2014 as compared to third quarter 2014. Finished steel products slipped 8 percent y/y […]
The House of Representatives passed legislation approving construction of the Keystone XL Pipeline. The project has been delayed for more than five years while seeking presidential approval for the line to cross the U.S./Canada border. The House voted 252-161-1 in support of the pipeline. The Senate will vote on Tuesday and will need 60 votes […]
WASHINGTON, DC –The Board of Directors of the American Iron and Steel Institute (AISI) today elected three new members to its Board of Directors. Lourenco Goncalves, Chairman, President and CEO of Cliffs Natural Resources, Inc.; Roger K. Newport, Senior Vice President, Finance and CFO of AK Steel Corporation; and Conrad J. Winkler, President and CEO […]
Evraz Claymont Steel is slated for demolition by Commercial Development Company, Inc. (CDC). The Delaware mill, which has been idled since December 2013, will be sold by Evraz to CDC for an undisclosed figure by the end of the year. CDC plans to “take the site through a brownfield-cleanup process, which will include the demolition […]
Evraz North America LLC has filed for an initial public offering (IPO) with the US Securities Exchange Commission. Evraz North America said it intends to use the proceeds from the share offering to complete acquisition of North American assets and repay debt to its Russian parent company Evraz. The number and price of shares to […]
On Monday, Nucor announced their intention to acquire Gallatin Steel and its approximately 1.8 million tons of hot rolling capacity. Today, 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 […]
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 […]
TransCanada’s Keystone XL Pipeline has been on hold since 2008 waiting for U.S. presidential approval of the permit to allow the pipeline to cross the U.S./Canada border. President Obama has said he would approve the pipeline only if it did “not significantly exacerbate the climate problem.” Opponents of the pipeline are concerned the pipeline will […]
With the announcement of the sale of Russian owned Severstal North America assets to AK Steel (Dearborn, Mountain State Carbon & Joint Ventures) and Steel Dynamics (Columbus) for $2.325 billion, the market is now asking what, or who, is next. There are two mills that are being mentioned. One, Gallatin Steel, a hot rolled mini-mill […]
NLMK USA sold 538,000 tonnes (593,033 net tons) of steel in the second quarter of 2014, an increase of 17.8 percent following low sale volumes in first quarter due to unfavorable weather conditions. Steel sales for the first half of 2014 totaled 994,000 tonnes (1.095 million net tons) due to stronger US demand, an increase […]
Media reports that Russian steelmaker Evraz is considering selling shares of its North American operations in an effort to reduce debt are unfounded according to a spokesperson at Evraz. “EVRAZ is not planning to sell its North American assets and in fact remains completely committed to our operations and continuing to grow our business in […]
The U.S. steel mills exported 1 million tons of steel during the month of April. This is within the 12 month moving average and only slightly higher than the 1,041,387 net tons shipped in April 2013. During the same month (April 2014) foreign imports rose by 999,557 net tons compared to the same period one […]
Steel Market Update published our special data on March steel imports which are produced by product (slabs, plate in coil, hot rolled, cold rolled, galvanized and Galvalume), by port of entry and by the country of origin. The full data is available for review by our Premium Level subscribers. Below is a portion of the […]
Bank of America Merrill Lynch gave their quarterly global steel outlook on April 8. BofAML predicts demand for finished steel in China will grow 4.4 percent in 2014. Chinese crude steel production is expected to increase 4.6 to 815 million tons. The outlook is for a trend of slowing but positive growth. Despite mill closings […]
Steel industry leaders met with members of the Congressional Steel Caucus this morning (March 25, 2014) to discuss the need for policy reform on trade, energy, environment and infrastructure in order to keep US industries competitive. SMU has reprinted the short version of the American Iron and Steel Institute press release below. The full testimonies […]
Russia and the Ukraine are major steel producers and exporters of steel to the rest of the world. Under the current political upheaval associated with these two countries, Steel Market Update thought it might be interesting for our readers to understand what steel products are being imported from the two countries into the United States. […]
Evraz NA said it may need to lay off more than 400 steel workers at the Evraz Regina mill in Saskatchewan due to transportation problems at the Canadian Pacific and Canadian National railways. Warning notices were sent last week to approximately 420 of its 510 employees in the company’s tubular steel division. Evraz says pipe […]
SMU Sources Forecast Scrap to Rise by $40 by the Beginning of the New Year Steel Market Update (SMU) scrap sources are forecasting ferrous scrap prices to rise by approximately $40 per ton by early January. December scrap prices are projected to be flat (sideways) to up slightly from November scrap pricing levels. However, scrap […]
Scrap prices settled higher as the first full week of November came to conclusion. Our sources pegged the Upper Midwest/Chicago area prices up approximately $30 per ton compared to the beginning of October. #1 Heavy Melt (HMS) was referenced at $375 per gross ton ($370-$380 range). Our previous price level for the area averaged $348 […]
Our ferrous scrap sources are advising Steel Market Update to expect a minimum of $20 per gross ton increase in scrap prices as we head into the month of November mill buys. We are finding there is some weakness being exhibited on the east coast with the Claymont plate mill being shut down by Evraz, […]
Evraz North America announced Monday it would suspend operations at its steel mill in Claymont, Delaware on December 13th due to “subdued market demand and the high volume of imports.” The Russian-owned mill produces specialized steel plate and has an annual capacity of 500,000 tons but produced only 383,590 tons in 2012 and 189,025 tons […]
House Subcommittee Presentations The American Iron and Steel Institute made its presence known last week on Capitol Hill. Top steel executives encouraged members of the House Energy and Commerce subcommittee on Commerce, Manufacturing and Trade to remedy government policies on tax, energy, infrastructure, environment and trade to strengthen American jobs in steel and other manufacturing […]
Large steel buyers with whom Steel Market Update had direct contact with over the past few working days paint a picture of the domestic mills still uncomfortable leading on pricing. Although that may be changing as word starts to spread on the newest scrap pricing. We saw a widening of the range on hot rolled […]
NLMK USA sales in 2012 grew 5 percent to 1.742 million tonnes (1.920 million net tons) from 1.658 million tonnes in 2011 (1.827 million net tons). Of the total, NLMK Indiana had a record hot rolled steel output of 725,000 tonnes (799,175 net tons), a 19 percent increase year-over-year. The balance of the hot rolled […]