Tag Archives: US Steel

Steel Dynamics Announces a New Organic Flat Roll Steel Mill Investment

FORT WAYNE, Ind. – Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced that its Board of Directors has authorized the company to construct a new state-of-the-art, electric-arc-furnace (EAF) flat roll steel mill in the United States.  The facility is anticipated to have an annual production capacity of approximately 3.0 million tons with the capability to produce the latest generation of Advanced High Strength Steel products.  The project will include value-added finishing lines, including a galvanizing line with an annual capacity of 450,000 tons, and a paint line with an annual coating capacity of 250,000 tons.  The product offering is anticipated to include various flat roll steel products, including hot roll, cold roll, galvanized, Galvalume® and painted steel, primarily serving the energy, automotive, construction, and appliance sectors.  The current estimated investment is $1.7 billion to $1.8 billion, with anticipated direct job creation of approximately 600 well-paying positions, and numerous opportunities for indirect job growth from other support service providers.

The company currently expects to locate the facility in the southwestern United States, to cost effectively serve not only the southern United States, but also the underserved Mexican flat roll steel market.  Determination of the final site location is subject to state and local government infrastructure and incentive support.  Upon final site selection and the receipt of required environmental and operating permits, the company would expect to begin construction in 2020, followed by the commencement of operations in the second half of 2021.

“We believe our unique operating culture, coupled with our considerable experience in successfully constructing and operating cost-effective and highly profitable steel mills, positions us well to execute this greenfield opportunity, and to deliver strong long-term value creation. We plan to utilize new technologies that will further reduce the gap between existing EAF and integrated steel mill production capabilities.  We are excited to announce this investment, which is a culmination of our intentional focus to cost effectively further serve the customers in this growing flat roll steel consuming region, while increasing our steelmaking capacity and value-added product capability.  As a site location is finalized and equipment negotiations are completed, we look forward to updating you on this important strategic initiative.”

Mark. D. Millett, President and Chief Executive Officer.

The company believes this planned growth investment is differentiated and supported by the following key competitive and strategic advantages:

Safety and Culture
  • This investment will benefit from Steel Dynamics’ focus on safety, its low-cost operating framework and entrepreneurial performance-based incentive culture.
Geographic Diversification
  • The new facility will serve the growing southern U.S. energy and construction sectors, which consume considerable amounts of flat roll steel products.
  • The new facility will also serve the growing steel consuming northern and mid-central regions of Mexico, which consume considerable amounts of flat roll steel products for the automotive and appliance sectors.
  • The site will have a significant competitive edge in the region, with meaningful regional freight cost and logistics advantages.
Product Quality and Diversification
  • The new facility will be designed with state-of-the-art technologies to produce the highest strength steels available to more comprehensively serve the automotive, energy and equipment sectors.
  • The new technology will allow for greater steel product optionality, including the use of thicker slabs and greater width capabilities, to increase product quality and finished product application alternatives.
Organic Growth Success Track Record
  • Steel Dynamics’ employees and its executive leadership have extensive experience constructing and operating EAF steel mills and downstream value-add finishing lines.
Sustainability
  • This project will provide meaningful well-paying U.S. jobs and talent development opportunities, with safety and sustainability as a primary focus.
  • Consistent with existing Steel Dynamics’ EAF steel mills, this new steel mill will provide an energy efficient, lower environmental impact steelmaking alternative, compared to average typical global steelmaking technologies in use today.

About Steel Dynamics, Inc. 

Steel Dynamics is one of the largest domestic steel producers and metals recyclers in the United States based on estimated annual steelmaking and metals recycling capability, with facilities located throughout the United States, and in Mexico.  Steel Dynamics produces steel products, including hot roll, cold roll, and coated sheet steel, structural steel beams and shapes, rail, engineered special-bar-quality steel, cold finished steel, merchant bar products, specialty steel sections and steel joists and deck.  In addition, the company produces liquid pig iron and processes and sells ferrous and nonferrous scrap.

Forward-Looking Statements  

This press release contains some predictive statements about future events, including statements related to conditions in the steel and metallic scrap markets, Steel Dynamics’ revenues, costs of purchased materials, future profitability and earnings, and the operation of new or existing facilities. These statements, which we generally precede or accompany by such typical conditional words as “anticipate,” “intend,” “believe,” “estimate,” “plan,” “seek,” “project” or “expect,” or by the words “may,” “will,” or “should,” are intended to be made as “forward-looking,” subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These statements speak only as of this date and are based upon information and assumptions, which we consider reasonable as of this date, concerning our businesses and the environments in which they operate. Such predictive statements are not guarantees of future performance, and we undertake no duty to update or revise any such statements. Some factors that could cause such forward-looking statements to turn out differently than anticipated include: (1) the effects of uncertain economic conditions; (2) cyclical and changing industrial demand; (3) changes in conditions in any of the steel or scrap-consuming sectors of the economy which affect demand for our products, including the strength of the non-residential and residential construction, automotive, manufacturing, appliance, pipe and tube, and other steel-consuming industries; (4) fluctuation in the cost of key raw materials and supplies (including steel scrap, iron units, and energy costs) and our ability to pass on any cost increases; (5) the impact of domestic and foreign import price competition; (6) unanticipated difficulties in integrating or starting up new or acquired businesses or assets; (7) risks and uncertainties involving product and/or technology development; and (8) occurrences of unexpected plant outages or equipment failures.

Source: Steel Dynamics, Inc.

U. S. Steel And USSC Reach Critical Agreement On Operations

Includes provisions regarding plant loading of critical automotive products

PITTSBURGH, Oct. 9, 2015 /PRNewswire/ — Today, United States Steel Corporation (NYSE:X) announced that the Ontario Superior Court of Justice has approved a mutually agreed upon transition plan with U. S. Steel Canada (USSC) as part of USSC’s restructuring under Canada’s Companies’ Creditors Arrangement Act (CCAA) process.  The agreement is an important step in separating the two parties.

Highlights of this agreement include:

  • U. S. Steel will not be generating any sales on behalf of USSC;
  • Going forward U. S. Steel will load its production on its U.S.-based mills;
  • U. S. Steel shall transition away from providing any technical and engineering services associated with product development or sales with USSC, and U. S. Steel will not support any field quality claims made against USSC;
  • U. S. Steel will continue to provide all shared services that USSC relies upon for up to 24 months, with the exception of sales;
  • Should USSC enter into a new sale and restructuring process (SARP) in the future, U. S. Steel will not be a bidder.On Sept. 16, 2014, USSC’s board of directors unanimously decided to apply for relief from its creditors pursuant to Canada’s Companies’ Creditors Arrangement Act.  As a result of the 2014 CCAA filing, USSC and its subsidiaries were deconsolidated from U. S. Steel’s financial statements on a prospective basis.  Despite efforts in the months following the CCAA filing, no negotiated or other settlement was achieved.

Prior to the Sept. 2014 CCAA filing, USSC recorded a loss from operations in each year for five years, with an aggregate operating loss of approximately $2.4 billion, or in excess of $16.00 per diluted share, since December 2009.  Additionally, USSC represented approximately $1 billion of U. S. Steel’s consolidated Employee Benefits liability as of June 30, 2014.

United States Steel Corporation, headquartered in Pittsburgh, Pa., is a leading integrated steel producer and Fortune 200 company with major production operations in the United States and Europe. The company manufactures a wide range of value-added steel sheet and tubular products.  For more information about U. S. Steel, please visit www.ussteel.com.

SOURCE: United States Steel Corporation

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US STEEL PRICE ROUNDUP FROM MEPS INTERNATIONAL LTD

Although US hot rolled coil customers were, initially, sceptical regarding the price hike announcements, recent settlements have reflected an increase, according to MEPS. Buyers report that delivery lead times are now well into June and suppliers are pushing for further rises beyond that date.

Hot rolled plate transaction values continue to deteriorate. However, mills report an uptick in demand in recent weeks due to declining inventories and stronger customer needs. Current delivery lead times, however, remain at four weeks. Meanwhile import volumes have slowed.

The negative price trend, for cold rolled coil, has been halted. Local mills have successfully negotiated a rise. Buyers are less keen to purchase from overseas whilst the authorities contemplate trade action. Many market players expect cases to be filed shortly. Service centre stocks are still overbuilt, but are reducing.

US auto demand is stable at a high level. Construction activity continues to improve but remains well below potential. Appliance makers have noticed a flattening in demand as a result of the strong US dollar. Coated steel transaction values reached the bottom in late April and are now moving up.

Sales of beams have still to pick up, despite better signals from the non-residential construction sector. Import availability is plentiful.

Rebar import prices are moving up. However, domestic transaction numbers have declined during recent settlements. Demand from the residential construction market is slow to improve.

Service centre sales of merchant bar have declined considerably compared with 2014 as agricultural and mining demand has fallen away. The domestic mills are carrying surplus stock. Imports from Turkey have slowed in recent months but supplies from Mexico are plentiful.

Source: MEPS International Steel Review – May Issue

US STEEL PRICE ROUNDUP FROM MEPS INTERNATIONAL LTD

According to MEPS, US demand for hot rolled coil is showing the usual seasonal slowdown, although underlying consumption is firm. Delivery lead times remain at roughly four to five weeks. Inventory is controlled, throughout the supply chain.International Steel Review

The plate market is expected to stay strong, at least through October. Direct mill business for wind towers, bridges and railcars is booming. Distributors’ inventories are low. Mill delivery lead times are now over twelve weeks. Despite announcements of a US$30 per short ton hike by a number of plate makers, market transaction values have stabilised and buyers envisage little change for the next quarter. High prices have attracted the attention of overseas suppliers. More customers are becoming interested in purchasing foreign material.

Cold rolled coil transaction values peaked in June. Today’s figures are 2.3 percent lower than a month ago. Supply tightness has eased, although demand, particularly from the auto sector, remains good. Import pressure persists.

The auto sector remains healthy and domestic appliance production is good. Sales of galvanised steel to construction continue to revive. However, imports are creating downward price pressure. Potential buyers are cautious because of the threat of anti-dumping measures. Domestic prices have weakened slightly.

As anticipated, last month’s wire rod price hike was short-lived due to falling scrap costs. Currently, many companies have sufficient stocks of Chinese and Turkish material but pending anti-dumping legislation could prohibit further purchasing of imports towards the end of the year. Demand from construction is steady. Several local producers recently announced a US$15 per short ton increase from August 1.

Wide flange beam prices are flat in the US. Soft scrap values have made no impact. Offshore supplies are available. There are some small signs of recovery in the non-residential building sector.

Rebar sales are relatively healthy and prices are unchanged from a month ago. Domestic mills report firm order books.

Transaction figures for merchant bar are steady at the level reported in June. The market is not strong enough to support a rise.

Source: MEPS International Steel Review – July Issue