http://www.metalcenternews.com RSS feeds for Metal Center News 60 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7683/SMU-Hosting-Steel-Summit-in-October.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=7683 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=7683&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7683/SMU-Hosting-Steel-Summit-in-October.aspx Aug. 23, 2012 SMU Hosting Steel Summit in October Steel Market Update will host its 3rd Annual Steel Summit Conference, in conjunction with METALCON, on Oct. 8 at the Embassy Suites O’Hare, Rosemont, Ill. The main theme of SMU’s conference is volatility and its impact on the economy, steel mills, service centers and the industry in general. For the first time, SMU is offering a free “pre-summit” program for those interested in learning more about the hot-rolled futures, options and swaps markets and how to manage price risk within their company or on the behalf of their customers. “Our past two Steel Summit conferences, which we held in conjunction with METALCON in Las Vegas and Atlanta, were very successful and well attended. We expect this year’s expanded program will be attractive to those associated with the steel and construction industries as we look at what the North American economy will hold in store for the industry in the coming year,” says John Packard, publisher and owner of Steel Market Update. For more information, visit www.steelmarketupdate.com. Thu, 23 Aug 2012 18:54:00 GMT f1397696-738c-4295-afcd-943feb885714:7683 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7682/New-Star-Metals-Gets-New-Owner.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=7682 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=7682&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7682/New-Star-Metals-Gets-New-Owner.aspx Aug. 23, 2012 New Star Metals Gets New Owner Service center company New Star Metals has shifted ownership from one private equity group to another. Aurora Capital Group has sold New Star Metals and two subsidiaries, Premier Resource Group and Electric Coatings Technologies, to an affiliate of Insight Equity Holdings LLC. Separately, Aurora sold the U.S. Metals and Supply division of New Star to Custom Steel Processing, Madison, Ill. Aurora has retained ownership of Miami Valley Steel Service Center, Piqua, Ohio. New Star is headquartered in Burr Ridge, Ill., with an additional facility in East Chicago, Ind. “The management team is excited to partner with Insight Equity, and we believe this transaction positions New Star to succeed and grow while maintaining a commitment to delivering excellent customer service and superior quality,” says Pat Murley, New Star CEO. U.S. Metals and Supply, based in St. Louis, is a distributor of cold-rolled and hot-rolled steel, offering slitting, shearing, edge narrows and flame-cutting services. Miami Valley will continue to provide value-added processing and distribution of sheet steel products to a diverse array of end markets. “The Miami Valley team is excited to continue its partnership with Aurora Capital and grow as an independent company by delivering the same uncompromised level of customer service and quality to which its customers have grown accustomed,” says Louis Moran, president of Miami Valley. Thu, 23 Aug 2012 18:52:00 GMT f1397696-738c-4295-afcd-943feb885714:7682 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7679/Metalformers-Outlook-Improving-Slightly.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=7679 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=7679&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7679/Metalformers-Outlook-Improving-Slightly.aspx Aug. 23, 2012 Metalformers’ Outlook Improving Slightly Metalforming companies still have mixed feelings about business conditions over the next three months, but the overall sentiment is improving, according to the latest report from the Precision Metalforming Association, Cleveland. PMI’s August Business Conditions Report shows that 23 percent of the executives surveyed expect economic activity to improve over the next three months, up from 19 percent in July. In contrast, 31 percent anticipate a decline, but that’s down from 36 percent last month. The story is the same in terms of incoming orders. Companies expecting an increase in orders improved to 29 percent, from 26 percent in July, while those forecasting a decline fell from 34 percent to 31 percent. Average daily shipping levels continued to decline in August. Only 17 percent of participants reported shipping levels above those of three months ago, down from 26 percent in July, while 40 percent reported a decrease in shipping levels, up from 31 percent in July. The percentage of metalforming companies with a portion of their workforce on short time or layoff increased to 13 percent in August, up from 12 percent in July. The August figure remains similar to one year ago when 12 percent of metalformers reported workers on short time or layoff. “Business conditions in the metalforming industry reflect continued concerns about economic conditions in the United States and increasingly in Europe,” says William E. Gaskin, PMA president. “The modest uptick in expectations for new orders and the slight decline in shipments are typical for mid-summer, as companies look ahead to higher production levels common in the early fall. Year-to-date, through June, the average PMA member has experienced a 9 percent increase in orders and a 10 percent increase in shipments, so there has been solid growth in 2012, even though the most recent months have seen modest decreases in activity,” he adds. Thu, 23 Aug 2012 16:03:00 GMT f1397696-738c-4295-afcd-943feb885714:7679 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7678/US-Steel-Aluminum-Shipments-Flat-in-July.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=7678 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=7678&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7678/US-Steel-Aluminum-Shipments-Flat-in-July.aspx Aug. 23, 2012 U.S. Steel, Aluminum Shipments Flat in July Steel and aluminum shipments from U.S. and Canadian service centers were mostly flat in July, according to the latest Metals Activity Report from the Metals Service Center Institute, Rolling Meadows, Ill. Only Canadian aluminum shipments bucked the trend with increases during the month. U.S. service centers shipped 3.3 million tons of steel products in July, an increase of 5.4 percent from the same month in 2011. For the year to date, shipments totaled 25.4 million tons, up 5.8 percent from the first seven months of last year. Steel product inventories totaled 8.9 million tons at the end of July, an increase of 6.2 percent over the previous year but down 1.0 percent from June. At July shipping rates, this represented 2.7 months supply, an increase of 0.8 percent from a year ago. U.S. service centers shipped 121,700 tons of aluminum products in July, an increase of 6.3 percent from the same month in 2011. For the year to date, aluminum shipments totaled 914,700 tons, up 3.8 percent from last year. Inventories of aluminum products were 387,600 tons at the end of the month, an increase of 9.4 percent over July 2011, and up 2.8 percent from June. At July shipping rates, this represented 3.2 months supply, an increase of 5.7 percent from the previous year. Canadian service centers shipped 471,000 tons of steel products in July, an increase of 0.5 percent from the previous year. Year-to-date shipments totaled 3.8 million tons, up 1.8 percent from the first seven months of 2011. Steel product inventories totaled 1.6 million tons at the end of July, an increase of 0.9 percent from last year and up 2.0 percent from the previous month. At July shipping rates, this represented 3.5 months supply, an increase of 0.4 percent from a year ago. Canadian distributors shipped 12,500 tons of aluminum products in July, an increase of 15.9 percent from the same month last year. For the year to date, aluminum shipments were 95,800 tons, an increase of 12.4 percent from the same period in 2011. Inventories of aluminum products totaled 39,000 tons at the end of July, an increase of 18.2 percent from 2011 and an increase of 6.1 percent from the previous month. At July shipping rates, this represented 3.1 months supply, an increase of 2.0 percent from a year ago. Thu, 23 Aug 2012 16:02:00 GMT f1397696-738c-4295-afcd-943feb885714:7678 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7677/TMK-IPSCO-Relocating-Headquarters-to-Houston.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=7677 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=7677&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7677/TMK-IPSCO-Relocating-Headquarters-to-Houston.aspx Aug. 23, 2012 TMK IPSCO Relocating Headquarters to Houston TMK IPSCO, the North American division of global pipe manufacturer TMK, will relocate its corporate headquarters from Chicago-suburban Downers Grove, Ill. to Houston. TMK IPSCO’s long-term strategy is to drive growth in the oil and gas markets, prompting the move. “Houston is the hub of the global oil and gas industry. It’s important for the company to be positioned there in order to facilitate relationships with key customers, attract and retain energy-industry talent and demonstrate our commitment to the industry,” said Piotr Galitzine, chairman of TMK IPSCO. “Most importantly, this transition will enable us to be a better, more efficient and more service-oriented company.” TMK IPSCO will begin the transition from Illinois to Texas over the next several months, with expected completion of the move by the summer of 2013. Most employees will be housed at the company’s newly built research and development center at 10120 Houston Oaks Drive. TMK IPSCO plans to build a new corporate headquarters facility in the next two years. Customers can expect uninterrupted service and delivery during the transition, the company claims. Thu, 23 Aug 2012 16:00:00 GMT f1397696-738c-4295-afcd-943feb885714:7677 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7676/Sales-Profits-Decline-in-Second-Quarter-for-Aleris.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=7676 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=7676&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7676/Sales-Profits-Decline-in-Second-Quarter-for-Aleris.aspx Aug. 23, 2012 Sales, Profits Decline in Second Quarter for Aleris Aleris International, Cleveland, reported net income of $34 million during its second quarter, a decline of 39.2 percent from the same period in 2011. For the first six months, net income declined 28.0 percent to $82 million. While Aleris saw increases in global aerospace and automotive market segments, plus increased demand from North American building and construction customers, lower demand in Europe resulted in a 4 percent decline in volumes for the quarter. Second-quarter net sales for Aleris totaled $1.2 billion, down 11.8 percent. For the first half, net sales totaled 2.3 billion, down 8.2 percent from 2011. While the company enjoyed an improved product mix, it was offset by a 24 percent decline in LME prices, a stronger U.S. dollar and weaker demand from Europe. Income in the company’s Rolled Products North America segment increased 12.9 percent to $35 million in the quarter, while volumes were up 3 percent. The volume growth was driven by increased demand from customers in the building and construction industry and other general industrial customers due to general U.S. economic improvements. Aleris Extrusions segment income increased 88 percent to $5 million in the second quarter. Profitability was positively affected by a higher value-added product mix, which more than offset a 10 percent decline in overall volume, the company said. Thu, 23 Aug 2012 15:59:00 GMT f1397696-738c-4295-afcd-943feb885714:7676 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7675/ONeals-Virginia-Facility-Now-Part-of-Flat-Rolled-Division.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=7675 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=7675&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7675/ONeals-Virginia-Facility-Now-Part-of-Flat-Rolled-Division.aspx Aug. 23, 2012 O’Neal’s Virginia Facility Now Part of Flat Rolled Division O’Neal Industries has reorganized operations in Lynchburg, Va., with the opening of a coil processing facility under the O’Neal Flat Rolled Metals division. The facility was formerly used by O’Neal Steel. The 135,000-square-foot warehouse will provide OFR a home for flat-rolled operations focusing on processing and distribution of carbon and nonferrous light-gauge flat-rolled metal products. The company’s product offerings include stainless, aluminum and carbon steels. The carbon products include hot-rolled pickled and oiled, cold-rolled, galvanized, electro-galvanized, galvannealed, galvalume and aluminized. “This expansion will allow OFR to supply customers with quality flat-rolled metals with a high level of customer service throughout the Mid-Atlantic states,” says Craig Picket, vice president of OFR. This expansion has created 13 new local jobs as OFR seeks to grow its flat-rolled processing and distribution in the region. O’Neal Flat Rolled Metals, headquartered in Brighton, Colo., maintains nearly 20 locations nationwide serving customers in diverse markets including construction, food service, transportation, HVAC, sheet metal fabrication, medical and automotive, among others. Thu, 23 Aug 2012 15:57:00 GMT f1397696-738c-4295-afcd-943feb885714:7675 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7673/Sales-Increase-Profits-Slip-in-Olympics-Second-Quarter.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=7673 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=7673&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7673/Sales-Increase-Profits-Slip-in-Olympics-Second-Quarter.aspx Aug. 23, 2012 Sales Increase, Profits Slip in Olympic’s Second Quarter Olympic Steel Inc., Cleveland, reported $4.5 million in net earnings for the second quarter, a decline from the $7.9 million during the same period of 2011. Net sales for the service center company jumped 22.9 percent to $367.4 million in the quarter, the product of the 2011 acquisition of Chicago Tube & Iron Company. First-half 2012 net income totaled $10.8 million, down 40.9 percent from the same period of 2011. First-half net sales were up 26.3 percent to $593.4 million. "We are pleased with our sales and market share growth in the second quarter. Earnings were impacted by degradation of pricing in both carbon and nickel products and costs associated with startups not yet fully operational,” said Chairman and CEO Michael Siegal during the company’s quarterly conference call with investors and analysts. Volume in the company’s flat-rolled business totaled 614,000 tons sold in the first half, a modest gain from the 603,000 tons sold in the first six months last year. Tons sold in the second quarter increased 6 percent to 302,000 versus the same period last year. On the other hand, gross margins were 19.5 percent, consistent with the 19.7 percent in the first quarter. Both were below the robust 20.9 percent in the first half of 2011, however, due to a decline in an active spot market and continued pressure on carbon and stainless prices. “The current year of supply-side pressure continued in July, resulting in declining steel prices and lower margins, especially in carbon flat-rolled areas. Usually, the first half is the seasonal time for price increases, but 2012 is a non-traditional year,” said David Wolfort, president and chief operating officer. Recently announced price hikes should bring some relief to the downward trend, he added, particularly as the mills dig in their heels to make sure they stick. “We do see traction on price increases. The producers are seeing some success, and we see that supported and fostered by an increase in scrap.” Olympic has plans to take its inventory down in the second half. The company has been running at an average of 4.1 turns per year, but intends to get that number back to its typical 5.0 turns over the back half of the year. Olympic has already spent $15.7 million of its estimated $30 million cap ex budget on expansion projects at facilities in Gary, Ind.; Mount Sterling, Ky.; and Streetsboro, Ohio. About $5 million has been used to expand capabilities at CTI. The $27 million temper line at Gary is the company’s biggest project, and production continues to ramp up. The facility was running at about 47 percent capacity in July. Thu, 23 Aug 2012 15:55:00 GMT f1397696-738c-4295-afcd-943feb885714:7673 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7493/Manufacturing-Contracts-for-Second-Straight-Month.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=7493 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=7493&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7493/Manufacturing-Contracts-for-Second-Straight-Month.aspx Aug. 8, 2012 Manufacturing Contracts for Second Straight Month Economic activity in the manufacturing sector contracted in July for the second straight month with a PMI of 49.8 percent, just slightly below the 50 percent threshold that indicates growth, according to the latest Manufacturing ISM Report on Business from the Institute for Supply Management, Tempe, Ariz. July’s PMI improved 0.1 percent from June. A PMI in excess of 42.6 percent, over a period of time, generally indicates an expansion of the overall economy, says ISM. “The past relationship between the PMI and the overall economy indicates that the average PMI for January through July of 52.5 percent corresponds to a 3.3 percent increase in real gross domestic product. If the PMI for July is annualized, it corresponds to a 2.4 percent increase in real GDP annually,” says Bradley Holcomb, chairman of ISM’s Manufacturing Business Survey Committee. Of the 18 manufacturing industries, only seven reported growth in July, including fabricated metal products and primary metals. Miscellaneous manufacturing and machinery both reported declines. The New Orders Index also registered contraction for the second straight month. The index was at 48.0 percent, an increase of 0.2 percentage points from June. Both the Production Index and the Employment Index remained in growth territory, registering 51.3 percent and 52.0 percent, respectively. The Prices Index for raw materials registered 39.5 percent, an increase of 2.5 percentage points from June, indicating lower prices on average for the third consecutive month. The Inventories Index registered 49 percent in July, which is 5 percentage points higher than the 44 percent reported in June. Nevertheless, the reading indicates that inventories are still contracting, which has been the case in nine of the last 10 months. Wed, 08 Aug 2012 16:16:00 GMT f1397696-738c-4295-afcd-943feb885714:7493 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7492/Welded-Tube-Shuttering-South-Carolina-Facility.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=7492 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=7492&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7492/Welded-Tube-Shuttering-South-Carolina-Facility.aspx Aug. 8, 2012 Welded Tube Shuttering South Carolina Facility Welded Tube of Canada is in the process of shutting down its facility in Huger, S.C., according to multiple published reports. The tubemaker will relocate production to its Concord, Ont., operations north of Toronto. The company’s South Carolina operation, which acquired the former AMS Tube plant in 2004, is located adjacent to Nucor’s Berkeley mill. It produces 100,000 tons of ERW tubular products annually. Welded Tube-Berkeley produces hot-rolled black tubing from 0.875-inch through 3-inch square and rounds from 1.250 inches OD through 4.500 inches OD, in wall thicknesses from 0.065 to 0.225 inch. The shutdown is expected to be completed in September. Wed, 08 Aug 2012 16:14:00 GMT f1397696-738c-4295-afcd-943feb885714:7492 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7491/SDI-La-Farga-Debuts-New-40-Million-Copper-Rod-Facility.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=7491 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=7491&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7491/SDI-La-Farga-Debuts-New-40-Million-Copper-Rod-Facility.aspx Aug. 8, 2012 SDI La Farga Debuts New $40 Million Copper Rod Facility Steel Dynamics showed off its new copper venture with Spain’s The La Farga Group during an open house in July. The venture, SDI La Farga, is in the process of commissioning the $40 million facility in New Haven, Ind. The first copper was melted June 14. SDI La Farga, the first operation of its kind in the United States, will refine recycled copper to produce new Cu-FRHC (fire-refined, high-conductivity) 8-millimeter rod at least 99.9 percent pure. It will meet ASTM B-49 standards. “We had a good turnout, and we received numerous positive comments on what we’re doing here,” says SDI La Farga General Manager Roy Perala. In the environmentally friendly process, recycled copper is melted, continuously cast and rolled into copper rod used primarily in the production of electrical wire and cable. At full production capacity, SDI La Farga is expected to produce approximately 180 million pounds of copper rod annually. Wed, 08 Aug 2012 16:12:00 GMT f1397696-738c-4295-afcd-943feb885714:7491 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7489/Gerdau-Resumes-Construction-of-Mexican-Structural-Shapes-Mill.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=7489 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=7489&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7489/Gerdau-Resumes-Construction-of-Mexican-Structural-Shapes-Mill.aspx Aug. 8, 2012 Gerdau Resumes Construction of Mexican Structural Shapes Mill Brazilian steelmaker Gerdau announced plans to resume construction of a $542 million steel mill in Sagun, Mexico. The electric arc furnace mill will focus on the production of structural shapes. The new mill will have an annual capacity of 1 million tons of steel and 700,000 tons of rolled product. The construction will enable the company to replace imports of the products into Mexico. The facility will be constructed as part of a joint venture with Gerdau Corsa. Plans for the mill were initially announced in 2008, but were idled with the economic downturn. The mill is expected to be operational by the second half of 2014. Also, Gerdau is in the process of installing a hot-rolled coil mill at its Acominas facility in Brazil. The 770,000-ton mill is expected to be on line before the end of the year. Wed, 08 Aug 2012 16:11:00 GMT f1397696-738c-4295-afcd-943feb885714:7489 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7488/CSI-Building-New-Pipe-Mill-in-California.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=7488 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=7488&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7488/CSI-Building-New-Pipe-Mill-in-California.aspx Aug. 8, 2012 CSI Building New Pipe Mill in California California Steel Industries Inc. will build a new pipe mill at the company’s site near Fontana, Calif. The cost of the facility is expected to exceed $100 million. The mill will produce high-strength electrical resistance welded pipe up to 24 inches in diameter and up to 80 feet in length. The company’s existing pipe mill can only produce up to 16-inch pipe and 60-foot lengths. Using induction welding technology, the new mill will be capable of increased wall thicknesses and improved yields, officials say. Annual production capacity is expected to be approximately 400,000 net tons upon completion, bringing CSI’s total tubular product capacity to more than 600,000 tons. The company also produces hot-rolled, cold-rolled and galvanized sheet products, with a total rolling capacity approaching 3 million tons. “This will be the largest single capital investment in CSI history, and we have invested about a billion dollars since the company was formed in 1983,” says Vicente Wright, president and CEO of CSI. “This is a testimony to the company’s continued resilience in the tough economic times we are in, and is a tribute to CSI’s shareholders and our employees, customers and suppliers.” Installation of the new mill equipment is expected to begin this quarter and be concluded by the end of 2014. At capacity, the new pipe mill’s additional tonnage is expected to generate approximately 100 new production and logistics jobs at CSI, which currently employs nearly 1,000 people. In other news, the shareholders of CSI have elected to rotate the CEO and chairman of the board positions at the company. Toshiyuki Tamai will become president and CEO of CSI, while Wright becomes the chairman of the board, replacing Kaoru Okamoto. CSI’s two equal shareholders, Vale S.A. and JFE Steel Corp. of Japan, have a tradition of alternating the appointment of the two positions. Wed, 08 Aug 2012 16:08:00 GMT f1397696-738c-4295-afcd-943feb885714:7488 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7486/Alamo-Iron-Works-Acquires-SGS-Industrial-Supply.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=7486 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=7486&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7486/Alamo-Iron-Works-Acquires-SGS-Industrial-Supply.aspx Aug. 8, 2012 Alamo Iron Works Acquires SGS Industrial Supply San Antonio-based Alamo Iron Works, a subsidiary of Industrial Distribution Group, has purchased the assets of SGS Industrial Supply Inc. SGS is a leading distributor of steel and industrial products in the Rio Grande Valley. AIW will expand its distribution network in South Texas by joining operations with SGS. The combined company will provide increased field sales support, improved inventory levels and a comprehensive catalog of industrial supply and steel products and services, the company claims. “This opportunity allows us to enhance our historical position in the Rio Grande Valley while maintaining the valuable relationships nurtured by SGS,” says AIW President F.M. Shea. “We are in a position of strength thanks to the investment and commitment of our parent company, which has allowed us to successfully grow the business and take advantage of timely opportunities.” SGS has locations in Brownsville and Pharr, Texas. “Existing AIW customers now have access to two new locations in the Valley, while SGS customers have access to expanded products and steel services that were not available to them before this combination,” says Scott Prince, a lead board director for IDG. Wed, 08 Aug 2012 16:06:00 GMT f1397696-738c-4295-afcd-943feb885714:7486 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7485/Russel-Metals-Reports-Profitable-Quarter.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=7485 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=7485&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7485/Russel-Metals-Reports-Profitable-Quarter.aspx Aug. 8, 2012 Russel Metals Reports Profitable Quarter Russel Metals Inc. reported second-quarter earnings of $23 million, down almost 25 percent from the same period in 2011. The profits also trailed the $33 million posted by the Mississauga, Ont.-based service center during the first quarter. The company’s sales totaled $719 million in the quarter, 16.1 percent better than the second quarter of 2011. Net sales were well below the $803 million in the first quarter. Net earnings of $56 million for the first half were 12.5 percent lower than the first six months of 2011. First-half net sales of $1.5 billion were 19.2 percent better than the same period last year. Revenues in Russel’s metals service center segment increased 11 percent to $432 million in the second quarter on stronger demand levels. Gross margins, however, were 20.4 percent compared to 23.7 percent in second-quarter 2011 as inventory holding gains experienced last year were not repeated, according to Russel President and CEO Brian Hedges. The 2012 second quarter also included earnings arising from the acquisitions of Siemens Laserworks and Alberta Industrial Metals, both of which were immediately accretive. Revenues in the company’s energy tubular products segment for the second quarter of 2012 increased 32 percent to $192 million as a result of large line pipe orders in U.S. operations and strong demand in operations servicing the Alberta oil sands. These large orders have lower gross margin percentages and thus margins in the segment were down to 13.9 percent in the 2012 compared to 16.2 percent in in 2011, Russel officials said. Revenues in the steel distribution segment increased 11 percent in the 2012 second quarter to $92 million. Gross margins in this segment were down to 13.9 percent from second-quarter 2011. Currently, the steel market is experiencing tighter margins due to softening domestic prices in an extremely volatile world economy, officials said. Russel plans to expand its value-added service center offerings later this year through the addition of stretcher levelers to its cut-to-length equipment in Ontario and Manitoba. Also, the company will upgrade its cut-to-length line at Arrow Steel Processors facility in the Port of Houston. Wed, 08 Aug 2012 16:03:00 GMT f1397696-738c-4295-afcd-943feb885714:7485 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7484/Will-Carbon-Flat-roll-Price-Hikes-Stick.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=7484 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=7484&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/7484/Will-Carbon-Flat-roll-Price-Hikes-Stick.aspx August 8, 2012 Will Carbon Flat-roll Price Hikes Stick? Will the latest round of flat-roll price increases stick? Yes, according to the majority of respondents to the latest Steel Market Update survey, conducted in the first week of August. SMU surveys mills, service centers, manufacturers, traders and toll processors each month to track market sentiment. Most of the responses to this poll came from OEMs and service centers. Asked if the latest round of price increases, led by AK Steel on July 27, would be collected by the domestic steel mills, 56 percent of respondents predicted the domestic mills would be successful, while 44 percent predicted buyers would reject the increase. Asked if the domestic mills were “justified” in asking for a second round of price increases, the response was more definitive. Nearly two out of three (62 percent) feel the latest price hikes were unjustified, given current market conditions. When producers in North America raise prices, they always run the risk of attracting a surge of low-priced foreign imports. Indeed, 38 percent of the respondents to SMU’s latest survey believe the recent price hikes will attract more foreign steel. OEMs tend to lead the charge toward foreign sourcing, whereas service centers are more cautious, SMU reports. In the past, a spread of about $60 per ton between foreign and domestic prices would trigger purchases of foreign products. With the higher levels of volatility today, a spread of $100 per ton is needed to prompt foreign sourcing. For more information or to become a subscriber to Steel Market Update, visit www.steelmarketupdate.com Wed, 08 Aug 2012 15:59:00 GMT f1397696-738c-4295-afcd-943feb885714:7484