Absolutely nothing. Which is why business men should not be in charge of chemistry driven commodity plays like mining, steel making, agriculture, just about anything involving complex ideas. These CEO buffoons only sell stuff they have no idea what is in it or how it works. Name one CEO who is a business man and talks about reaction mechanisms. Why do you think you have seen consolidation in the Biotechnology and Pharmaceutical space. Business finally got a hold of those companies and slashed R&D cost putting scientists out and jacking up your costs for a few pills. This is why your pharmaceutical companies have little to no pipelines.
It takes money to make money. Business men have not learned this idea yet. They think if they cut every cost, jack up rates, and beg the government for less taxes the company will do just fine. Ha
But turning this back around to CLF getting rid of a business man with only a 4 year degree and replacing him with an engineer with a 6 year degree makes all the sense in the world. Iron ore and the steel industry need to get back to grassroot campaigns. It is fun to watch LG steer this company not into the most lucrative market (international market) but to the market that CLF is strongest in. That is why this company needs a man of science and not a sales volume guy.
Still no alternative energy source rivals the BTU output of the carbon based oil, coal, and natural gas. But these commodities so essential for life and business are worthless but a company like 3M or SAP or Amazon are worth more than commodity stocks combined. The world is upside down.
Studied this stuff for ten years. Yeah maybe I miss the nuances but I got the general idea. Go take a class and read a book once. Hard to believe a 150 year old company can amass an intellectual fortune yet be worth only a few hundred million dollars yet something like Facebook is around for 20 years and is worth hundreds of billions. If not for steel there would be zero computers. Without steel no cars or houses. Just funny how things are evaluated on dip street.
The DR space is being driven by quality input materials. Given the ultra low cost for iron ore, EAF mini mills are looking into buying the highest quality iron on the cheap. US Steel would be wise not to enter this space and give their competition a leg up. CLF on the other hand does not have competition. Only business interests.
Nice find. Nucor has a rival. Voestalpine is the real deal. Quality input materials means quality products. This highlights Nucors needs to secure a DR product.
Tell me if you thunderbird materials are so good why don't you use a reused catalytic converter or have you car engine made from reused steel.
Did you know that Nucor reuses rust in its steel process. So what if the oxidative state of the iron molecule has changed, this makes zero difference to you because the molecule is still Fe which is all you scallywags care about.
You do know the differences between hematite and magnetite right? Hint it is much more than a few characteristics. It is all about oxidative states.
The quality of NUCORs product is limited by the input material. Blast Furnaces do not have this hindrance. Look into the steel making process. Blast furnaces burn much higher and end up dealing with pure materials. Nucor makes lessor steel compared to blast furnaces. The company is limited by its input material. Blast furnaces are not. Want me to repeat myself again. Go read a book on the steel making process.
Maybe the steel passes spec but that does not change the fact it is inferior to blast furnace made steel.
Mass spectrometry deals with how a molecule breaks apart. Do you even know what these tests are used for? In terms of QC all that needs to be met is the specification. When talking about rebar just how vigorous and strenuous do you think those specifications are. And yes it is that simple. No way does NUCOR or any steel using EAF mill produce quality steel. No way end of story and yes it is that simple.
No the pellet contract does not transfer. There would have to be a renegotiation of the pending agreement. Making the original agreement a waste of everyone's time.
If the banks loan Essar Algoma the money to complete the restructure Canada can do nothing. Personally, I would bet on a restructure. Why do I say this. If Essar Algoma didn't plan on running the mill any longer why would the company enter into a 10 year pellet agreement?
That is why the Stelco one year pellet agreement is very suggestive of that mill being sold.
It is all about starting material. I have been posting about this for months.
What do you think makes better stuff original material or reused steel?
Would you like to wipe your fanny with reused toilet paper or freshly made TP?
Your answer is a duh response. Think McFly.
Blast Furnace made steel is the highest quality steel there is. Why? Because Blast Furnace steel mills use fresh iron ore. Nucor uses steel. There is no comparison between the quality of Blast Furnace steel and DRI made steel. Hence it needs a steady supply of fresh iron ore that is why Nucor needs CLF!
NUCOR makes garbage steel. All EAF mills are subsidized by our government that way they can sell that garbage for a profit. NUCOR is nothing more than a politically driven steel machine just like the entire wind and solar energy companies. Nucor produces garbage!!!
I wonder how a company in bankruptcy/ restructuring process (CCAA) can ink a 10 year pellet deal. While another company in the same bankruptcy/restructuring process (CCAA) can ink a 1 year deal
Can you imagine the technology involved in a DRI facility. Yeah it would take $750 million to produce but imagine the science that would be involved in the process. That mill if made would be a game changer for CLF. Not only would it allow entry into the EAF industry but CLF would have much more than just pellet technology. I hope it happens.