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Source: SteelGuru

The Platts reference prices of imported and domestic made hot rolled and cold rolled coil in the US market plunged amid reports of US mill sales reps calling buyers almost non stop seeking October 2008 orders.

There has also been a resurgence of low-priced offers from offshore producers, mainly HRC from Russia and CRC from China and Finland.

The major flat rolling mills namely US Steel, Nucor and ArcelorMittal, had been trying to separately hold offers within a range of USD 1,000 to USD 1,020 per short tonne ex-works in the case of HRC. That stance, however, was undermined by…

Read the full piece at SteelGuru >>

by Tim Klass | Source: South Coast Today

On picket lines in Seattle and production lines in Pittsburgh, union workers are showing no fear in demanding a hefty share of the profits from Boeing Co. and United States Steel Corp., whose businesses have soared above the more widespread economic downdrafts in other sectors.

Last Tuesday the United Steelworkers union ratified a four-year contract their chief negotiator, Tom Conway, touted as the best in the nation’s steel industry in 30 years.

More to this “big picture” story at the South Coast Today >>

By Tom Stundza | Source: Purchasing.com

ArcelorMittal also will spend $160 million to buy the Monessen Coke Plant in Monessen, Pa., from Koppers to secure more of the baked coal fuel needed to fire steel furnaces.

Read the full story at Purchasing.com >>

By BOB MIHELL | Source: Sault This Week

“A shoreline greening project is also underway at Essar Steel Algoma, with hydro seeding and tree planting in progress along the entire shoreline, commencing at the eastern perimeter in back of the Administration Building and planned to extend all the way to the western perimeter of the property. Apart from the obvious aesthetic value of a greening initiative, the plantings will help improve air quality.

In addition, a very large berm is under construction, with the first phase nearing completion. Beginning at the western corner of the boat slip, spanning approximately 200-feet wide at the bottom, standing about 50 feet high and extending 300 feet long, the berm is designed to prevent trace dust particles from the coal piles from migrating off the property.

“To address the potential for coal pile run off, a collection trench is maintained to keep the water from entering the slip. The Company has also commenced a dust suppression program on the coal piles and surrounding roadways to reduce the amount of particulate released into the air.”

Since the Indian multinational, Essar Global, assumed ownership of the Canadian steelmaker in June 2006, it has come under intense public and government scrutiny as a result of Essar’s plans to double steel production within five years.

Stenta described a dredging project currently underway with MOE approval at Saw Mill Point in preparation for new dock facilities to allow Essar Algoma to substantially increase freighter traffic bringing additional raw materials, such as coal and iron ore, to the plant.

Stenta wrote: “Essar Steel Algoma has taken steps through our dredging contractor, Purvis Marine, to put a silt curtain in place to ensure any sediment that may be disturbed will not be carried downstream. In addition, Purvis Marine has acquired new, state of the art dredging equipment that provides for less sediment disturbance and features GPS devices on the hoist allowing for very accurate, targeted dredging.

Read the full, detailed story about many influences on St Marys River water quality at Sault This Week >>

Source: Hamilton Spectator

What came in and out of the Port of Hamilton the week of Aug. 24 to 30, 2008

• Estimated total tonnage: 368,258
• Total ships in and out: 17
• Domestic: 15
• International: 2
• Percentage of imports: 80.9
• Percentage of exports: 19.1

Incoming: A total of 11 vessels arrived with bulk raw materials (coal and ore) used in production at steel mills ArcelorMittal Dofasco and U.S. Steel Canada and one overseas vessel arrived with steel.

Outgoing: Two vessels exported petroleum products and one exported grain.

Highlights for the week: The Federal Power arrived with a cargo of steel from Bremen, Germany. Following the Hamilton discharge, the vessel was destined for Cleveland, Ohio, to discharge the remaining cargo.

The M/V Whistler loaded steel coil to be exported to Spain and the UK.

Related: Severstal Sees Big Bucks In U.S. Coal - Forbes

By Dale Crofts and Maria Kolesnikova | Source: Bloomberg Canada

OAO Severstal, Russia’s biggest steelmaker, agreed to buy PBS Coals for $1.3 billion to supply it U.S. operations with coking coal.

Cherepovets, Russia-based Severstal said it will buy a combination of PBS and Penfold Capital Acquisition Corp. for C$8.30 ($7.93) a share, Severstal said today in a statement.

Severstal, led by billionaire Alexei Mordashov, follows steelmakers including ArcelorMittal and Posco in acquiring coal mines after a year in which steel and coal have doubled to record[ prices]. Demand for raw materials is surging as steelmakers boost production to satisfy greater usage in China and India.

… A steel shortage in the U.S. pushed prices to a record $1,052 a ton in June. Severstal spent $950 million this year on an ArcelorMittal plant near Baltimore and WCI Steel Inc., based in Ohio. The company also acquired steelmaker Esmark Inc. for about $672 million to sell a wider range of products.

The Russian steelmaker runs a mill in Dearborn, Michigan, that supplies Ford Motor Co., and the SeverCorr factory in Columbus, Mississippi.

More about OAO Severstal’s investments, positioning and industry notes at Bloomberg Canada >>

BY ANDREA HOLECEK | Source: NWI Times

A summary of the tentative four-year agreement between the United Steelworkers and U.S. Steel Corp. has been mailed to the 16,000 members in the 12 union locals covered by its terms.

Approval of the pact would put $6,000 signing bonuses in the pockets of each of the company’s union workers, including the 5,500 employed at the combination of Gary Works, the Midwest plant in Portage and at East Chicago Tin.

Voting on the agreement by union members is by mail-in ballot, with the vote to be counted in early to mid-September, said Jim Robinson, USW District 7 director.

Read the full story at the NWI Times >>

Elisabeth Johns | Source: Hamilton Spectator

Last week, a crowd at Ivor Wynne Stadium watched as a U.S. Steel Canada blast furnace belched out a black cloud.

On Wednesday, another black cloud containing coal and iron ore emissions floated over the city’s north end, one more product of a pressure release from an ArcelorMittal Dofasco blast furnace.

And Thursday afternoon, two thick red clouds filled with iron oxide spewed in nearly as many hours in another release from ArcelorMittal Dofasco’s blast furnace.

… On Aug. 6, in an unprecedented move, the company shut down a blast furnace because of the impact the wet weather is having on operations.

“Moisture poses a serious risk factor that we guard against every day as the reactions can be fast and sometimes violent, and can impact equipment, health and safety and, of course, environment,” said Andrew Sloan, company spokesperson.

The raw materials sitting in piles outside the plants — mostly coal and iron ore — soak up rainwater.

This excess moisture is causing more volatile reactions when these materials are heated in the blast furnace to make iron, the principal component of steel.

ArcelorMittal Dofasco shut down the blast furnace in a move that hasn’t been made in the past quarter-century, Sloan said.

Full story, picture of emissions cloud at the Hamilton Spectator >>

Source: Sunny Steel News Center

Prices continued to increase for all steel products and the mills have announced further price increases for August and September. Our contacts voiced increased pessimism, however, on the ability of the mills to pass along the announced increases and as well as achieve higher pricing in the fourth quarter.

… The diminishing outlook of distributors on steel-pricing fundamentals is driven by the widely reported declines in ferrous scrap pricing and further weakness in demand, particularly for automotive.

… ArcelorMittal is taking a fourth-quarter 2008 100-day maintenance outage at its Burns Harbor mill, which will significantly reduce the amount of steel production aimed at the sluggish domestic automotive industry.

Many more predictions, citations at the Sunny Steel News Center >>

BY JEWEL GOPWANI and BRENT SNAVELY | Source: Detroit Free Press

As the industry works on technologies under the hood, producers of each of the industry’s three main raw materials — steel, aluminum and plastic — are feverishly trying to help automakers reduce vehicle weight, while competing for a bigger share of the overall materials that make up a vehicle.

Today’s steel, for example, is stronger, more rust resistant and lighter than in the past, and more advances are expected, said Ron Krupitzer, vice president of automotive applications for the American Iron and Steel Institute.

Krupitzer said that with the use of today’s high-strength alloys, “steel can achieve at least 25% mass reduction.”

Lower mass can help automakers improve fuel efficiency and reduce greenhouse gas emissions, he said.

Steel, Krupitzer said, accounts for about 60% of the average weight of cars and light trucks.

Much, much more in this lengthy story at the Detroit Free Press >>

by Tom Breckenridge | Source: The Plain Dealer

The import of foreign steel has hit a 15-year low at Cleveland’s port.

At the same time, the Cleveland-Cuyahoga County Port Authority is handling unprecedented levels of steel barged from Canada.

And ArcelorMittal is about to double the modest amount of steel it sends to foreign markets through the Cleveland port.

… ArcelorMittal will send 64,000 tons of steel coil through the port to Brazil and Europe, by year’s end.

… Steel and iron traffic on the St. Lawrence Seaway was down 48 percent through May, officials said.

Offsetting Cleveland’s loss in foreign-steel tonnage is new business by barge. An Ontario steel mill has sent 48,000 tons so far by water, rather than rail and truck.

Activity is also up at the Cleveland Bulk Terminal, which handles iron ore for the busy ArcelorMittal plant. Shipments are at 960,000 tons after six months, an increase of 11 percent.

Read the full story at The Plain Dealer >>

Source: The Hamilton Spectator

What came in and out of the Port of Hamilton last week: July 13-19

• Estimated total tonnage: 309,054
• Total ships in and out: 17
• Domestic: 17
• International: 0
• Percentage of imports: 70
• Percentage of exports: 30

Incoming: Nine ships arrived with bulk raw materials (coal and ore) used in production at steel mills ArcelorMittal Dofasco and U.S. Steel Canada. Five vessels handled petroleum products, three handled aggregate and one vessel handled steel.

Outgoing: 0

Highlights for the week: The port receives a wide variety of aggregates and dry bulk commodities including gypsum, stone and sand. Pier 23 is home to Lakeshore Sand, which processes foundry and glass making sand, casting and water filtration sand, and bunker sand supplied to nearly 40 area golf courses.

The primary operators in the domestic laker fleet on the Great Lakes are Canada Steamship Lines and Seaway Marine Transport, which serve steel mills ArcelorMittal Dofasco and U.S. Steel Canada and carry a variety of other bulk cargo through the system and to and from Hamilton. The port averages more than 500 domestic vessel calls each year.

Related: Cleveland-Cliffs shareholder unhappy with Alpha deal - Reuters UK

By Yana Morris and Michael Ross | Source: FT.com/dealReporter

Prior to announcing a sale to Cleveland-Cliffs (CLF) on Wednesday, Alpha Natural Resources (ANR) had been holding informal discussions with two foreign companies since the beginning of the year, a source close to the deal, but not close to the foreign companies, told dealReporter. ArcelorMittal was understood to be one of these companies.

On Thursday Harbinger Capital Partners, Cleveland-Cliffs’ largest shareholder with a 18.36% stake, announced it was opposed to the deal.

Given the two-thirds vote needed from Cleveland-Cliffs shareholders to approve the deal, Harbinger may have a good chance of swaying an outcome.

A long-term ANR shareholder commented that CLF’s price was insufficient. It was his opinion that ANR’s consensus numbers underestimate the company’s true potential, and that the target would be getting the short end of the stick if the deal with CLF is culminated.

Whether the deal goes through or not, the source contended that the greater issue at hand is the destiny of CLF, given the stringent conditions to the closing of its ANR purchase and the fact that its line of business is in hot demand for global steel producers.

Read the full story at FT.com >>

By Craig Davison | Source: News-Dispatch

Peter Laman, port director of Burns Harbor, said the largest products of import and export [for the Ports of Indiana] are coal, grain, steel, limestone and fertilizer. The port handles 15 percent of all U.S. steel trade with Europe.

He said most ships can carry about 20,000 tons or the equivalent of 800 truck loads.

The three ports in Indiana contribute about $3.5 billion and 23,000 jobs to Indiana, Laman said.

Questions pressed on the possibility of a multimodal facility and any relationship it could have with the port. Laman made statements it would be feasible in the future, but made no commitments and said he was not involved in any discussions with any groups.

Laman said they would look for transportation links that made sense for moving cargo in the state that make logistical sense.

Full story at the News-Dispatch >>

See Also: No End In Sight To Commodity Inflation - an excellent detailed, more in-depth analysis at Oxford Analytica/Forbes

Source: Forbes

Barclays Capital analyst Amrita Sen said demand for the commodity has yet to peak - which means this year’s price increases will likely be followed by more such gains.

“The recent surge in steel prices can in no sense be seen to have peaked, given the tightness in the scrap and raw material market,” the analyst wrote.

Full story at Forbes >>

By Dale Crofts | Source: Bloomberg

OAO Severstal, Russia’s largest steelmaker, boosted its takeover offer for U.S. producer Esmark Inc. by 13 percent to $775 million and entered a merger agreement with the target company.

Investors will receive $19.25 for each Esmark share, up from an earlier bid of $17, Cherepovets, Russia-based Severstal said today in a statement. Esmark’s board of directors will recommend shareholders tender their shares, the company said in a separate statement.

Read the full story at Bloomberg >>

Related Must-Read: Heavy Industries Joining Stampede to Raise Prices; Posco and Dow Chemical Follow ‘Global Trend’ - RedOrbit

Stewart Bailey and Dale Crofts | Source: LiveMint

Chief executive of ArcelorMittal Lakshmi Mittal said the world may be facing its first steel shortage in decades because of accelerating demand and a lack of investment when the metal was trading at lower prices.

“There is short supply; all steel companies are running at full capacity,” Mittal said in an interview in New York. “We’re facing for the first time in decades a potential shortage of steel.”

The “volatile years of boom and bust” in steel prices have been relegated to the past, Mittal said. Users of steel will have to “adjust to the new reality and the new pricing environment.”

Mittal discusses current company strategy at LiveMint >>

By MARTIN CRUTSINGER | Source: Yahoo News

U.S. steel pipe manufacturers, who have been battling a surge in imports from China, won a major victory Friday when the International Trade Commission cleared the way for the imposition of stiff penalty tariffs for the next five years.

The commission voted 5-0 that the U.S. industry was being harmed by the import of circular steel pipe. The decision marked the first time a U.S. industry has won a decision to impose tariffs on a Chinese product based on the argument that the Chinese government was unfairly subsidizing a Chinese industry.

The ruling means penalty tariffs ranging from 99 percent to 701 percent will be imposed on Chinese imports of circular welded pipe.

Read the full story at Yahoo News >>

Steve Arnold | Source: The Hamilton Spectator

Finding future sources of business is becoming critical for the Port of Hamilton. Hamilton’s steel mills provide 80 per cent of the cargo passing over its piers, and that volume has been dropping steadily.

In April, the authority reported steel imports for 2007 fell 65 per cent under the impact of steel industry consolidation and market changes. Shipments of raw materials such as iron ore and coke increased slightly in 2007, but imports of semi-finished products, such as steel slab, plunged to 350,000 tonnes from one million tonnes in 2006.

Read the full story at the Hamilton Spectator >>

Peter Passi | Source: Duluth News Tribune

In mid-March, Northshore restarted Furnace No. 5 — a piece of equipment that last produced pellets more than a quarter century ago.

“We’ve shaken out a lot of the start-up bugs now, and it’s running well,” said Scott Gischia, Northshore’s manager of environmental services. “We’re seeing good production rates and good quality.”

The rejuvenated line brought 30 additional jobs to Northshore, which now employs 549 people.

The furnace also will boost Northshore’s annual production capacity by about 800,000 tons. That’s an increase equivalent to 13.6 percent of the plant’s total production in 2007.

“This shows us the commitment that Cleveland Cliffs is making to Northshore Mining and the community,” said Silver Bay Mayor Scott Johnson. “It means more jobs and more stability for our local economy.”

Read about the comeback investments and efforts at the Duluth News Tribune >>