The U.S. steel industry has been materially injured by imports of cold-rolled flat steel products from China and Japan, the International Trade Commission (ITC) said June 22. All six ITC commissioners voted affirmatively. Chinese producers are now facing anti-dumping penalties of 265.79 percent, while Japanese producers face margins of 71.35 percent , with final orders to that effect to be issued by the Commerce Department. Chinese producers will also be hit with countervailing duties of 256.44 percent, for a whopping 522.23 percent in all. However, the ITC returned a negative determination for both countries regarding critical circumstances, whereby producers had been accused of stepping up shipments following the filing of the case to beat potential penalties. As a result, goods that entered the United States from China prior to Dec. 22 will not be subject to retroactive countervailing duties, and goods that entered the United States from China and Japan prior to March 7 will not be subject to retroactive anti-dumping duties, the ITC said. Domestic industry participants cheered the ITC's injury determination. The commission made the right call today, Alliance for American Manufacturing president Scott Paul said in a statement June 22. China and Japan have clearly continued to overproduce and subsidize steel at the cost of American jobs, and we appreciate today's commitment to enforce our trade laws. Meanwhile, the office of Sen. Sherrod Brown (D., Ohio) attributed the petitioners success in the case to bolstered trade legislation, such as the Leveling the Playing Field Act . But Tadaaki Yamaguichi, chairman of the Japan Steel Information Center and president of New York-based JFE Steel America Inc., called the decision extremely regrettable and unjust, noting that during the ITC's anti-dumping investigation the Japanese steel industry denied that its product injured the U.S. industry.
Essar Global Ltd. objects to the sale of Canadian subsidiary Essar Steel Algoma Inc. to a consortium of bidders formed by KPS Capital Partners LP. There has not been adequate opportunity for other potential bidders to participate throughout this process, Mumbai, India-based Essar said, blasting the private equity firm's potential acquisition of the Sault Ste. Marie, Ontario-based steelmaker. A KPS spokesman did not respond to requests for comment June 21. Stronger steel prices should have given Essar Steel Algoma more time to consider options besides the New York-based private equity firm, Essar said, noting that it has invested nearly $800 million in its subsidiary and supported the Canadian company through several market downturns. The company also contended that Essar Steel Algoma's filing for creditor protection was precipitated by the cancellation of key raw materials supply contracts. Cleveland-based iron ore miner Cliffs Natural Resources Inc. canceled its iron ore pellet contract with Essar Steel Algoma in October. The Canadian steelmaker filed for protection under (CCAA) and Chapter 15 of U.S. bankruptcy law the following month. Nonetheless, Essar said it has no intention of leaving Canada's steel scene. Essar Global is optimistic about the future of Canadian steel and looks forward to being active participants for many year to come,the company said. Essar Steel Global Fund Ltd. has also been identified as among the potential bidders for Essar Steel Algoma. The company said Tuesday that it could not confirm or deny any potential bid for the Canadian subsidiary, because of confidentiality agreements. Essar has also been reported to be a potential suitor for U.S. Steel Canada Inc. An Essar spokeswoman did not respond to requests for comment on whether it is interested in the Hamilton, Ontario-based steelmaker. U.S. Steel Canada filed for CCAA protection in September 2014.
Maybe this is the impetus for a full blown takeover of this company. Always thought the company wound merge with XO or another wireline company. Google would be good. At some point Goldman Sachs has to sell. They have wasted a decade in this investment and sit a VP on the board. Management and directors continue to buy stock in the company, both open market and in lue of cash compensation. If Google can give me 5 or 6 a share and they can have my proxy .
Most efficient/fastest way I know to get information out! You know a better way, feel free to post Are you short this name?
This is long overdue. Should fly, and create a more level playing field for investors when valuing US based mining companies ...."not only minerals recoverable today but the full potential of its mineral resource holdings".
U.S. disclosure requirements for mining companies could get their first overhaul in more than 30 years with a number of newly proposed rules by the U.S. Securities and Exchange Commission (SEC). Along with establishing uniform standards for mining operation disclosures, the proposed rules also offer updates to other standards and definitions, the SEC said June 16. The revisions would overhaul Industry Guide 7, the SEC's current disclosure regime for mining companies, which hasn't been updated since 1982. The proposed rules would modernize the commission's disclosure requirements by aligning them with global standards and give investors more comprehensive information of a registrant's mining properties that they can use to make informed investment decisions, SEC chair Mary Jo White said in a statement. The National Mining Association (NMA) was one of the organizations pushing the SEC to update the disclosure requirements to align them with international standards, NMA vice president of external communications Luke Popovich. Popovich claimed that domestic mining companies have long been at a disadvantage to international competitors due to their ability to report potential reserves, which are an important factor in determining a company's value. The SEC, in this proposal, seeks to fix this disadvantage by expanding reporting requirements to a U.S. publicly traded mining companies full mineral resources, i.e., not only minerals recoverable today but the full potential of its mineral resource holdings. This will enhance our valuations and more fairly represent them to investors, Popovich said via e-mail. Although some of the proposed rules might cost mining companies because they would have to hire an industry expert to compile the disclosures, he did not see that as a deterring factor. It will be outweighed by the higher valuations that now will truly reflect a company's assets, Popovich said. The SEC has given the public 60 days to comment on the proposal.
NNut you to let Bloom Lake go. As in let it go. Yes, it was a a catastrophe of epic proportions for Cliffs...almost sunk the company. The CEO was very clear on this matter.......they could not afford to keep it. The liabilities associated with keeping the mine, once they closed it, were estimated at 700M+, starting with the egregious take or pay contract with RIO, etc. They tried to partner on it with Nucor, MT, and the Japanese, and failed. The only available choice after that was to shield the parent from massive cash burn, and perhaps ch11.. So that's what he did.
The question is do you trust them.They have dual position on the capital structure..a potential conflict of interest. Also, what is there investment track record and talent. The NOLs are only useful if your good at making money. Very sad ending for Openwave, the patent initiative was way too slow and too expensive. There was a sea change unfolding in IP, as the bigs decided on a scorched earth policy on patent litigation/licensing....very effective. I hope Great Elm hits on something big, as this now a VC/private equity type investment.
KPS also joins Essar Group among the final bidders for Hamilton, Ontario-based U.S. Steel Canada Inc., according to a report in the /Hamilton Spectator/. A spokesman for U.S. Steel Canada declined to comment on the names or nature of any potential buyers due to nondisclosure agreements, but echoed a previous statement that the company had received many bids. U.S. Steel Canada filed for CCAA protection in September 2014 and is seeking buyers for its assets, which largely consist of the Hamilton Works and its Lake Erie Works in Nanticoke, Ontario . A potential buyer might be looking to combine the two troubled steelmakers into a single, stronger entity that would offer a complete range of steel products, market sources said. Essar Steel Algoma has a strong position in the carbon sheet and plate markets, while U.S. Steel Canada is known for making galvanized material for the automotive market, they noted. A thicket of labor, environmental and legacy pension costs would stand in the way of any such deal, some said. But others argued that KPS which has experience restructuring troubled union-represented plants is capable of undertaking such a task. KPS is no stranger to the metals space. It sold Waupaca Foundry Inc., the world's largest iron foundry company, to Japan's Hitachi Metals Ltd. for $1.3 billion in 2014. A KPS spokesman did not immediately respond to a request for comment
A consortium of bidders formed by KPS Capital Partners LP has agreed to buy most of Essar Steel Algoma Inc. assets for an undisclosed amount. The New York-based private equity firm's offer includes cash, a credit bid and the assumption of certain liabilities, according to the Sault Ste. Marie, Ontario-based steelmaker. The new company formed by the consortium will securely position (Essar Steel Algoma) with a capital structure to sustain all phases of the steel cycle, Essar Steel Algoma president and chief executive officer Kalyan Ghosh said in a June 17 statement. The name of the new company has not been determined, an Essar Steel Algoma spokeswoman said. Essar Steel Algoma filed for creditor protection under Canada's Companie's Creditors Arrangement Act (CCAA) and Chapter 15 of U.S. bankruptcy law in November. It has also sought an expedited sale process. We are pleased that we have reached this point in the CCAA process and look forward to exiting, Ghosh said. The deal is expected to close on or before Aug. 31, but remains subject to court and regulatory approvals as well as customary closing conditions, Essar Steel Algoma said. It also hinges on the resolution of certain benefit, pension, labor contract, capital project and environmental matters, the company added. �#$%$?In the interim, it remains business as usual the company said. An integrated producer, Essar Steel Algoma has an annual raw steel capacity of about 2.8 million tons and produces both hot- and cold-rolled sheet and plate products, according to its website. Its sale appears to mark the reversal of a deal that saw Mumbai, India-based Essar Group buy the former Algoma Steel Inc. and the former St. Paul, Minn.-based Minnesota Steel LLC in deals valued at $1.6 billion each during a three-day span in mid-April 2007.
Cliffs Natural Resources Inc. plans to sell up to $300 million of common stock in a secondary offering to repay senior secured notes due in 2018. "Approximately $283.6 million aggregate principal amount of our 2018 senior notes were outstanding as of March 31," the Cleveland-based iron ore miner said in a June 16 filing with the U.S. Securities and Exchange Commission (SEC). The offering is estimated to be about 30-percent dilutive to shareholders, analysts from New York-based Cowen & Co. said in a June 16 research note. Cliffs controls about 44 percent, or 25.5 million long tons, of domestic iron ore pellet capacity, giving it a unique competitive advantage due to its close relationship with domestic producers, according to the filing. "Long-lived assets with an average mine life of approximately 20 years provide the opportunity to maintain our significant market position well into the future," the miner said. Cliffs said it is also somewhat insulated from global iron ore pricing moves. "More than half of U.S. iron ore production is sold through long-term contracts that are structured with various formula-based pricing mechanisms that reference seaborne pricing, inflation factors and steel prices, and mitigate the impact of any one factor's price volatility on our business," the company said.
NickN, do you have a BS, MS, or a PhD in chemistry? Maybe we should be calling you Dr Doom?
To that end, NanoSteel has produced a series of video advertisements, one featuring former General Motors Co. product czar Bob Lutz at the wheel of a flashy steel-bodied sports car that ends with the bright red convertible running over and crunching an aluminum beverage can in the middle of the roadway. Even given the affordability and punch of the the ad campaign, it will be difficult to slam the brakes on the proliferation of aluminum in more components, James Tumulty, chief executive officer of Pittsburgh-based financial advisory firm Calibre Group LLC, said during the panel discussion. All metals are innovating to compete for automotive share, he said. In my opinion, aluminum and other lightweight materials will continue to fight for every reasonable component, and they will win more battles then they lose. Make no mistake, the aluminum industry has a great deal of its future prosperity riding on success in the automotive arena. OEMs are including aluminum sheet maker Novelis Inc. in conversations about material choice early in the development of new platforms, the company's top executive says. Novelis recently unveiled the third continuous annealing solution heat-treat line at its Oswego, N.Y., plant in late May, a $120-million investment that will allow the company to fully supply high-volume demand from Dearborn, Mich.-based Ford Motor Co. and other OEMs .
Lightweighting steel while retaining its key properties, such as affordability, will help steel remain the material of choice among automotive manufacturers, especially if consumers become more informed about the materials that make up the cars they drive, NanoSteel Co.'s top executive said. We talk about aluminum as a solution. ... I came from aerospace. I actually have to say it is a great material for the right things. ... People are going to use the thing that's easiest to solve their problems. The cheapest solution, in this case the cheapest material, that solves their problem is what car companies are going to use. That's why steel has been used for so long, David Paratore, president and chief executive officer of Providence, R.I.-based NanoSteel, said June 14 during a panel discussion at the Steel Success Strategies XXXI conference in New York. The fact is, the auto companies were questioning whether we could continue to be that solution, he acknowledged. We didn't have good answers. NanoSteel is one of those answers that's beyond good, it makes their life easy. NanoSteel partnered with West Chester, Ohio-based AK Steel Corp. earlier this year and recently shipped a sample of the material to Detroit-based General Motors Co. for testing . Since no major modifications to conventional steelmaking equipment are required to produce the high-technology, specialized metal, the material is said to be as affordable as current offerings of advanced high-strength steels to automotive manufacturers. And that affordability can fortify steel's dominance in the automotive arena for original equipment manufacturers (OEMs) and the end consumer alike, Paratore said. How do we as an industry win back some momentum that aluminum took from us? he asked. Part of the answer is making the performance characteristics of what their car is made of more relevant to the average user.
All the bonds are soaring on the capital raise. Some senior notes are up 700% from the Jan/March lows, plus 40-50% interest/year. Amazing to get those kinds of return on BONDS.
There work in Texas....exemplary They even sold out 4 years of production before the first ton was shipped. Very high marks. And deep pockets.
It would be nice if Voestalpine AG landed an HBI plant in Minn, and Cliffs could be the DR grade supplier, with very little capex and risk.