Top News - Steel Business Briefing

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A weekly compendium of American steel news December 15, 2011

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GM this week announced a partnership with Japan’s Teijin Ltd to develop alternatives to steel to meet increasingly stringent fuel efficiency standards. That could come in the form of carbon fiber reinforced composite material to replace sheet steel that is much lighter than steel, but is stronger. This substitution is seen by some material scientists as The Holy Grail given the high profile and massive volume of the American auto industry. Yet this particular effort has been under way for more than 20 years, and there are still no carbon fiber cars crowding the highways. That’s because there is more at stake than just weight and strength. Cost is a factor, as noted by SMA president Tom Danjczek, who said, “It’s

tough to economically mass produce a Bugatti” (apparently a high-end car beyond the reach of most reporter-types). But there is another, more important, factor: safety. Steel is strong but it also crumples, or crimps, absorbing the impact of a collision, protecting passengers. As to composite materials, I recall seeing shards of plastic on the road after a Pontiac Fiero crash back in the 1980s. To be fair, composites have come a very long way since then and the “crimpability” of reinforcing carbon fibers is key in this regard. But steel already does this in excellent fashion. It’s in its nature.

Tom Balcerek Editor - American Steel Review

[email protected]

Top News

Nucor increased transaction prices by

$30 a ton on rebar, merchant bar and light

structurals and by $20/ton on wide flange

beams, effective Jan. 1.

The hikes, rooted in a $30/ton scrap

surcharge increase, are being followed by

most Nucor’s competitors (see page 5).

The moves come on the heels of a $30

rise in a benchmark shredded scrap price

that is being either fully or partially passed

through to buyers.

A distributor who keeps a 60-75-day

supply of rebar, says he is unsure if that

will change because of the hikes. He adds

mill prices could rise again in February and

March.

Plate prices going up $50 for February Exports fall 5% in Oct, but still top 1m

Steel exports fell 5% m-o-m in October,

but remained above the 1m-tonne mark.

Exports were 1.04m t, down from 1.1m t

in September, according to the DOC.

Big drops were reported in exports of

coiled plate (down 40%), hotrolled sheet

(down 43%) and coldrolled sheet (down

26%). Cut plate exports were down 5%.

Exports of heavy structural shapes rose

11% m-o-m. Stainless steel exports rose

to 45,732 t from 42,422 t in September.

With price increases already planned

for January, two plate makers have set

further price hikes for February.

SSAB Americas announced a $50/ton

increase on all carbon and alloy plate

including Q&T, effective with orders

promised Jan. 29.

According to market sources,

ArcelorMittal also has issued a pricing

announcement calling for a $50 price

increase on all plate for February

shipments, . . . (continues on page 4)

January surcharge hike of $30/ton raises longs prices rise $20-30/ton

SBB Steel Price Trackers

14 Sept 7 day change

World 268pts* -1

HRC world $770/t -9

Rebar world -3

Late News

Nucor lowers fourth quarter earnings projections compared to third quarter levels due to lower steel prices and metal margins

Evraz North America appoints John Zanieski president of Evraz Recycling

Inventory issues could push up scrap prices

Nonresidential construction spending trends down in October

Contents

Steel Price Heat Map …………………...……...

Market Watch ……………………………...……..

Week in Focus ………………………..…………...

Industry News ………………………..…………...

Profile: Triple-S Steel………………………..……

2

3

4

5-7

8

Editors comment

Steel alternatives: Vehicle weight is one thing, but safety is another

Numbers of the week

October steel exports to Canada and

Mexico fell slightly to 513,392 tonnes and

281,928 t, respectively, down from

517,674 t and 294,600 t the month prior.

Decreases were also realized in exports to

Brazil, which fell from 23,212 t in Septem-

ber to 15,654 t in October.

The US drill rig count has fallen for the 5th

month in a row to 1,987 rigs for the week

ended Dec. 9, off from 1,993 the prior

week, but still up 264 from a year ago.

The drill rig count declined by only 6 rigs

last week but that was the result of a loss

of 36 natural gas rigs, offset by a gain of

29 oil rigs and 1 rig classified as miscella-

neous.

15 December (Issue 49-11) 2011


Top global price movers of the week*

price change w-o-w

1. Scrap / Auto bundles / Turkey domestic delivered $/t $406/tonne +$11 +2.8%

2. Flat Products / (20tonon lots) / FOB US Midwest 1 month $675/tonne +$12 +1.8%

3. Scrap / HMS 1/2 80:20 / Turkey import CFR Turkish port $/t $440/tonne +$7.5 +1.7%

3. Semi-Finished / Billet (65t lots) / London Metal Exchange 3 months bid/offer $/t $562.5/tonne -$1.5 -0.3%

2. Seamless pipe grade 8163 / China domestic Shanghai (incl. 17% vat) $/t $847/ tonne -$4 -0.5%

1. Flat Products / CRC / N.Europe domestic Ex-Works $/t $739/tonne -$5.5 -0.7%

* Prices based on midpoint of price range

Falling rapidly

Rising rapidly

Prices stable

Shredded scrap prices in the showed a significant increase for the second consecutive week, climbing $16/long ton to $444/l.t, delivered Midwestern US mill, according to a weekly survey by The Steel Index. The index price is now up $29/l.t over the last two weeks, according to TSI.

Scrap

The latest daily iron ore reference

prices by The Steel Index show prices

for 62% and 58% Fe content iron ore

fines dropped 2.7-4.0% over the last

week. The reference price for 62% Fe

content fines was $5.60/dmt lower than

a week earlier at $133.80/dmt. TSI’s

63.5/63% Fe reference price also fell to

$137.60/dmt. The reference price for

58% Fe fines eased 2.7% or $3.30/dmt

below the previous week’s price.

Iron ore Recent price hikes have quickly ele-

vated mill fob prices, with hotrolled coil

going for about $680-700/ton and cold-

rolled and galvanized material for

roughly $780-800/t and $800-830/t,

respectively. However, market sources

debate the impact the potential BF re-

start of US Steel’s Hamilton, Ontario,

sheet mill will have on the market. It is

unclear whether a settlement with Can-

ada’s government will require it to

come back on stream.

Flats

Steel Price Heat Map



Sheet price increases boost pre-Christmas shopping Americans have been conditioned to do their Christmas shopping early to avoid the holiday rush. Similarly, steel buy-ers are getting the nudge by mills to buy now or face a price hike later. But distributors aren’t necessarily complaining as price hikes raise the value of their inventories - and get end-use buyers in a shopping mood, as they need to avoid those future price hikes as well.

Severstal takes the lead on raising sheet prices (again) Severstal NA has made a sheet market leading sheet move once

again, announcing it will raise spot prices by $40/ton, effective

with Dec. 14 orders. It takes SNA's hotrolled coil list price to

$740/ton and coldrolled and galvanized substrate material to

$850/ton. "Steel demand in December continues to improve and

we expect even further improvement in 2012," SNA vp of com-

mercial Tom Marchak said. SNA also made the first move in two

recent rounds of sheet price hikes, a pattern not lost on domestic

buyers. "They are really trying to be the industry leader," said

one. Taking up sheet prices a third time in two months could be

risky. "The problem I see is two-fold. (SNA's) HRC lead time is Jan.

9, which is essentially 2-1/2 weeks because of the upcoming holi-

days," he added. "The second part is we are booking import for

early March arrival for less than $740, landed. For the time being,

I am booking import as the spread is too great not to."

USA has become a seller’s market when it comes to sheet Sheet prices continue their run-up in what's swiftly become "a

seller's market." Recent price hikes have quickly elevated mill fob

prices, with hotrolled coil going for about $680-700/ton and col-

drolled and galvanized material for roughly $780-800/ton and

$800-830/ton, respectively, prior to the SNA announcement. One

source said spot prices are likely to keep rising "as lead times and

scrap prices continue to make this a seller's market." He predict-

ed HRC would end the year "above $700 per ton." A trader

agreed, saying mills have "a little momentum right now."

Sheet demand rebound could be short-lived Some believe current sheet ordering is merely a short-term re-

lease of pent-up demand for goods. "Lead times have advanced,

but I would comment that the momentum is very tentative," said

one source. "There is no doubt the economy has shown some

improvement...I neither think it will last, nor is it a sign of a better

climate to do business. I think 2012 is going to be more of the

same." One distributor believes the latest price increases "have

some more legs as global prices are also starting to trend up. I

anticipate another price increase with things topping out in early

February." Still, many say rising prices and increased buying are

due mostly to a fear of being caught early next year without ma-

terial or seeing prices rise further. "(There's) nothing backing it up

in demand, so maybe we run up for another month or two before

we repeat the cycle," a Southern source said.

Mills followed suit with earlier $40-50 moves Following price hikes by competitors Nucor and AK Steel earlier

this month, RG Steel has informed customers it also will raise

spot sheet prices. RG said non-contract orders - for all products,

from all facilities - will increase by a minimum of $40/ton. Similar-

ly, AK announced an increase, effective immediately with new

orders, that takes its base prices up by $40/ton for hotrolled coil

and $50/ton for coldrolled and coated products. Nucor also told

customers it is hiking HRC prices $40 and CRC and galv prices by

$50, also effective immediately for new orders. Some believe HRC

could top $700 a ton, fob mill, if the current demand rebound has

some legs.

More US sheet hikes unlikely until world catches up Additional US sheet price hikes are unlikely to be implemented

before domestic spot prices reach an equilibrium with offshore

pricing, according to US analyst Michelle Applebaum, managing

partner at Steel Market Intelligence. "We believe sheet price in-

creases have been driven by a steep reduction in net sheet im-

ports that has taken more sheet out of the marketplace than new

capacity has added; the most recent uptick is also a function of

sharply higher prime scrap prices, in our view," Applebaum said.

"This type of supply/demand 'equilibrium' however is exceedingly

fragile and domestic sheet prices will be trading at higher-than-

normal levels relative to global if these hikes stick, so that we do

not expect to see more price increases until pricing offshore hits

an equilibrium." US HRC prices are up 2.3% so far this month. The

uptick is greater than China's 0.3% increase, and the 8.4% and

2.5% declines seen in Japan and Europe, Applebaum noted last

week. "

The Steel Index reveals big gains in sheet price deals The latest reference prices released by The Steel Index (TSI) show

that US coil prices continued to move upwards last week. Prices

are 1.6-4.0% higher week-on-week, and up $46-67/ton over the

past four weeks. The TSI hotrolled coil reference price, fob Mid-

west mill, gained 4% to $682/ton ($752/tonne) since the prior

week, while coldrolled coil and hot-dip galvanized sheet refer-

ence prices increased by around 1.6%. TSI bases its data on actual

transaction prices provided by steel producers and buyers.

Market Watch

SBB Rebar prices - per ton, fob Midwest mill

Jul. ‘11 Aug. ‘11 Sep. ‘11 Oct. ‘11 Nov. ‘11 Dec. ‘11

$720-740 $720-740 $725-745 $740-760 $738-758 $730-750



Bureaucrats busy keeping dumping duties straight Trade case filings and final determinations often make the news - even beyond the trade press. There can be big im-pacts on consumer prices, global political relations and the health of the industries affected. But in the day-to-day world of government bureaucrats, trade cases continue to demand attention as adjustments, expirations and cancelations re-quire regular tending and reporting.

Japanese tinplate duties up for sunset review The International Trade Commission (ITC) says it will schedule a

full sunset review regarding an existing antidumping duty order

on tin- and chromium-coated sheet from Japan. The ITC is seek-

ing to determine whether revoking the antidumping duties on

those products "would be likely to lead to continuation or recur-

rence of material injury within a reasonably foreseeable time,"

according to an ITC filing. The commission will hold a hearing in

connection with the review on April 11, 2012. Requests to appear

at the hearing should be filed in writing with the secretary to the

commission on or before April 3, the agency says.

ITC green lights trade action on welded pipe imports The ITC voted to continue an investigation into imports of alleg-

edly dumped and subsidized circular welded pipe from India,

Oman, the UAE and Vietnam. Late last month the Department of

Commerce said it would pursue duties against these exporters of

roughly 3-48%, but the ITC has the final say in the matter. In its

preliminary finding, the ITC voted 5-0 that there is "a reasonable

indication that a US industry is materially injured by reason of

imports" in the welded pipe case filed by US producers. As a re-

sult, the DOC will continue to conduct its antidumping and coun-

tervailing duty investigations, with its preliminary CVD determi-

nation due around Jan. 19 and its preliminary AD duty determina-

tion due around April 3.

DOC rescinds AD review of welded pipe from Taiwan The DOC is rescinding administrative reviews of antidumping du-

ties on certain welded circular pipe and tube from two Taiwanese

steelmakers, following a request by sole petitioner US Steel. The

DOC had initiated a review of AD duties on the product from

eight Taiwanese pipemakers, including these two, in late June,

upon USS’s request. In August, USS withdrew its request pertain-

ing to six of the companies. The DOC then rescinded reviews of

duties on E United Group, Yieh Corp, Yieh Hsing Enterprise Co,

Far East Machinery Co, Kao Hsing Chang Iron & Steel Corp and

Tension Steel Industries Co. USS let stand requests for reviews of

AD duties on pipe from Yieh Phui Enterprise Co and Chung Hung

Steel Corp, but last month withdrew these as well, prompting the

DOC's canceling of the remaining reviews this week. The Taiwan

pipe duties range from 0% to 43.7%, covering standard pipe with

outside diameters of 0.375-4.50-inch and wall thickness of 0.065-

inch or greater.

Administrative review of Chinese pipe canceled In a development similar to the cancelation of new action on Tai-

wanese welded pipe duties (above), the DOC has canceled ad-

ministrative reviews of circular welded carbon quality steel pipe

from China as well. This was at the request of US petitioner the

Ad Hoc Coalition For Fair Pipe Imports. The coalition, which was

originally made up of Allied Tube and Conduit, Ipsco Tubulars,

Sharon Tube Co, Western Tube & Conduit Corp and Wheatland

Tube Co, withdrew its request for a review of 29 Chinese pipe

makers who shipped product to the US between July 1, 2010, and

June 30, 2011.

US adjusts dumping duties on Turkish welded pipe The DOC has concluded its administrative review of welded car-

bon pipe and tube from Turkey and adjusted antidumping duties

on behalf of domestic producers US Steel, Allied Tube and Con-

duit and TMK Ipsco, The AD duties for the May 1, 2009 through

April 30, 2010 period of review have been set at 4.46% for the

Borusan Group and 0.95% for Toscelik. Those duties will apply

retroactively to the period of review and be collected as cash

deposits for imports from these producers going forward. Turkish

producers have previously been assigned AD and countervailing

duties for standard pipe and AD duties for light-walled rectangu-

lar pipe and tube. For Turkish standard pipe the duties range

from 3.28-28.28%, while CVDs on the same product range from

0.84-7.26%. AD duties on Turkish light-walled rectangular tubes

are 27.04-41.71%.

Plate prices going up $50 for February shipments (continued from page 1) . . . although ArcelorMittal did not im-

mediately confirm it. Earlier this month ArcelorMittal, Nucor and

SSAB announced a $30/ton increase in plate transaction pricing

for January shipments. With market sentiment pointing toward

the January price hikes sticking, attention now turns to the Febru-

ary moves. The ability of domestic mills to pass on the second

round of price hikes will likely hinge on scrap and imports. A key

scrap benchmark price climbed $30/long ton for December. “It is

expected that scrap will go up again in January which will support

the (latest) increase,” one Midwestern plate buyer said.

Week In Focus

SBB wire rod prices - per ton, fob Midwest mill


$930-950 $930-950 $865-890 $780-810 $740-763 $720-740



Iron and Steel Making

Flatrolled steel US hotrolled sheet mill lead times have shot up by nearly a

week, as spot prices continue to rise and another round of

price hikes has begun. Still, coldrolled and galvanized coil

lead times both have fallen slightly. According to The Steel

Index, HRC lead times increased week-on-week to 4.5 weeks

for the week ended Dec. 11 - up from 3.6 the prior week.

CRC lead times, however, slipped to 7.1 weeks from 7.5, and

hot-dipped galvanized lead times dipped to 6.9 weeks from 7

weeks, TSI said. The extended HRC lead times come as

Severstal NA kicks off another round of US spot price hikes.

US Steel and the Canadian government have agreed to settle

a lawsuit over the company's Hamilton and Nanticoke oper-

ations, but not all parties involved are pleased with the out-

come. The government had been pursuing USS for potentially

millions in fines related to the idling of its Hamilton sheet

works, in what officials said was a dereliction of duties under

the Investment Canada Act. In separate statements, Canadian

minister of industry Christian Paradis and US steel said they

were pleased to reach a settlement that calls for USS to con-

tinue operations there until at least 2015. However, the Unit-

ed Steelworkers union (USW) said the Canadian government

"betrayed working families in Hamilton and Nanticoke by

dropping its court case against US Steel despite the compa-

ny's clear violations of federal law. Instead of upholding a le-

gally-binding agreement, the Conservatives have become par-

ty to a foreign corporation breaking commitments to Canadi-

an families and communities," USW Canada director Ken

Neumann said in a statement. Paradis said USS's new com-

mitments "will provide benefits that in all likelihood would

not have been obtained through the court process." He said

the company will continue to produce steel in Canada,

operate at both Lake Erie and Hamilton until 2015 and make

at least C$50m (US$48.4m) in capital investments by Decem-

ber 2015.

Evraz North America may begin recalling some laid-off work-

ers at its Regina, Saskatchewan plate and pipe mill shortly

after the new year, according to individuals close to the situa-

tion in Canada. A spokesman for United Steelworkers union

local said certain planned layoffs have been canceled and

business conditions at Regina have improved since Evraz de-

cided to lay off 250 of its 900 Regina employees in November.

Recalls were originally expected to begin in March. About

1,200 employees at Regina and its sister Evraz mill in Calgary,

Alberta ratified a new three-year labor agreement with Evraz

over the weekend. The previous contract expired July 31. Rep-

resentatives for Evraz could not be reached for comment.

Long products Gerdau Long Steel North America published a $20/ton net

price increase for beam and piling products effective Jan. 1.

The announcement comes after Nucor released the same

boost in transaction prices for wide flange beams, H-pile and

standard sections.

Byer Steel Group of Cincinnati announced a $20/ton price

increase for its grade A996 rebar. The company’s rebar is

made from rerolled railroad axles. Burke Byer, president and

ceo, says the group is the last domestic producer of A996 re-

bar, which is comparable to A-615 grade 60 rebar.

US government data show heavy structural shapes and rebar

exports hit their highest numbers in at least 15 months this

past October. Overall exports of heavy sections increased to

102,926 tonnes, up nearly 11% from September’s 92,964 t.

Canada remains the largest importer of US structural shapes

at 55,963 t in October, up from 49,228 t in September. Mexi-

co remains the second largest recipient with a steady but in-

creasing volume that totaled 25,741 t in October. Rebar ex-

ports in October hit 62,716 t, up 5%.

Scrap and raw materials Industry sources point toward increased export demand

along with seasonal factors primarily driving the increases in

shredded scrap prices, as prices climbed for the second con-

secutive week. Additionally, a large purchase of US scrap from

India was made in the last few weeks, which has had an effect

on the overall US scrap price. “This is not a surprise really,”

one southern source said. “You have some seasonal consider-

ations and weather to think about. You have an inventory

perceived to be relatively low all around the supply chain and

a steady export market."

Industry News

Estimated Weekly US Raw Steel Production

Week Ended Production

in tons Change w-o-w

Change y-o-y

Capability Utilization

Dec. 10, 2011 1.84m -0.9% +11.2% 74.3%

Source: American Iron and Steel Institute

SBB Merchant bar prices - per ton, fob Midwest mill


$835-860 $848-875 $860-890 $860-890 $860-890 $845-875



“The projects in Alabama are vital to Lakeside’s future success. Producing high-quality, heat-treated products in the most efficient manner possible will ensure that our

company is competitive for years to come.”

- Lakeside Steel president Ron Bedard

Quote of the week

SBB WF beam prices - per ton, fob Midwest mill


$840-850 $840-850 $840-850 $840-850 $840-850 $790-810

North American rail shipments of steelmaking raw materi-

als continue to outpace 2010 levels, according to the latest

Association of American Railroads data. Rail car loads origi-

nating from the US, Canada and Mexico of metallic ores,

coke and iron and steel scrap totaled 1.55m through the first

48 weeks of 2011 compared to 1.45m car loads through the

same period in 2010. Metallic ores, consist overwhelmingly

of iron ore. Rail car loads of metallic ores (1.06m) and iron

and steel scrap (283,445) are outpacing 2010 levels while car

loads of coke (213,484) are 1.6% lower than 2010. Car loads

of metallic ores originating from Canada have totaled

615,957 in 2011, 3.2% ahead of 2010 and accounting for

nearly half of all North American car loads of the steelmak-

ing raw material. The US has accounted for 224,543 car loads

of iron and steel scrap, which accounts for 79% of all North

American rail car loads of iron and steel scrap.

Lakeside Steel has made its first commercial pipe in Thom-

asville, AL. The Ontario-based producer built the 192,000

tons/year mill over the past 14 months and is adding heat-

treating and end-finishing for a mid-January start. Success-

fully rolling the first 10-inch OD, 44-foot length of pipe is a

critical development, according to Lakeside president Ron

Bedard. Lakeside also has a pipe mill in Welland.

Specialty piping systems manufacturer MFRI Inc of Niles, IL

witnessed a margin crunch in the third quarter due to a lack

of major projects in the UAE and India. MFRI posted net in-

come of $700,000 on sales of $71.3m for the third quarter

ended Oct. 31. In fiscal Q3 2010, MFRI had a net profit of

$3.6m on sales of $58.8m. MFRI’s earnings review adds that

“a temporary overstaffing condition resulted from the need

to maintain experienced staff that will be transferred to the

new plant in Saudi Arabia to support its rapid start-up later

this year. Extremely competitive market conditions also con-

tributed to the margin decrease.” In addition to specialty

insulated piping systems, MFRI produces industrial process

cooling, HVAC and filtration products.

Stainless and specialty steels Total US stainless imports and consumption are both up

year-on-year, though import penetration appears to be slip-

ping, according to the Specialty Steel Industry of North

America (SSINA). Year-to-date through September, the US

consumed about 1.78m tons of stainless steel, up 31.8% over

y-t-d September 2010’s figure. Concurrently, y-t-d imports

through September reached 606,917 t, up 30.9% y-o-y. Nine-

month import penetration, however, fell 0.3 percentage

points y-o-y to 34.1%. The numbers for bellwether product

stainless sheet and narrow strip reflect SSINA’s overall num-

bers. Y-t-d September the US consumed 1.21m ton of stain-

less sheet and strip, up 31.7% y-o-y. Imports were up 12.9%

to 313,342 t, yielding import penetration of 25.9%, or 4.3

percentage points lower than y-t-d September 2010.

Service centers, distributors and end users US government data show heavy structural shapes and re-

bar exports hit their highest numbers in at least 15 months

this past October. Overall exports of heavy sections in-

creased to 102,926 tonnes, up nearly 11% from September’s

92,964 t. Canada remains the largest importer of US structur-

al shapes at 55,963 t in October, up from 49,228 t in Septem-

ber. Mexico remains the second largest recipient with a

steady but increasing volume that totaled 25,741 t in Octo-

ber. Rebar exports in October hit 62,716 t, up 5%.

Service center chain Ryerson has bought a suite of SBQ and

specialty bar firms headquartered just outside Pittsburgh.

Turret Steel Industries and Sunbelt-Turret Steel Inc are

headquartered in Imperial, PA. Together with affiliate firms

Wilcox Steel and Imperial Logistics, the two firms generate

about $130m in annual sales. Ryerson declined to release a

purchase price for the four companies. Turret Steel specializ-

es in distributing SBQ bar under six inches in diameter, while

Sunbelt-Turret focuses on larger-diameter product. Wilcox

produces cold-drawn bar in Green Bay, Wi and Imperial coor-

dinates trucking services for all three. A midwestern US ser-

vice center executive whose business also specializes in SBQ

bar said this acquisition will allow Ryerson to target a wider

swath of SBQ buyers.

Company news, places and people Commercial Metals Co will study investor Carl Icahn and IEP

Metals Sub LLC’s tender offer to buy the company’s out-

standing common shares for $15/share. IEP is a subsidiary of



Icahn Enterprises Holdings LP. CMC's board will inform share-

holders of its position. Until then, the company advises share-

holders to take no action. Icahn first proposed the $15/share,

or $1.73bn, buyout offer in late November, but CMC acknowl-

edged it had been communicating with the known corporate

raider during the company’s earnings call in late October. The

investor owns 9.98% of the Texas-based steelmaker, scrap

processor and trader he’s trying to acquire. However, the

“poison pill” CMC enacted in August discourages sharehold-

ers from owning more than 10% of CMC’s shares. Icahn ex-

pects shareholder tenders will push the board to lift the poi-

son pill and waive provisions of a state law regarding share

ownership. Section 203 of Delaware’s general corporation law

would protect CMC from engaging in business combinations

with any associate or affiliate who owns 15% or more of the

outstanding voting stock for three years after the 15% has

been acquired. “We will fight this case all the way to the Dela-

ware Supreme Court, and it is our belief, that we will prevail

on the merits and that the court would order the board to

redeem the pill and waive Section 203 so that the sharehold-

ers can be paid,” Icahn says in a statement.

Auto maker General Motors is partnering with Japanese al-

ternative material firm Teijin Ltd to develop lighter, stronger

alternatives to steel for its vehicles. Teijin claims that its pro-

prietary production process significantly reduces the time it

takes to mass-produce carbon fiber reinforced auto compo-

nents. It plans to build a technical center in the northern US in

early 2012.

Government affairs, labor and legal matters A pipeline safety bill endorsed by the Interstate Natural Gas

Association of America (INGAA) passed both the US House of

Representatives and the US Senate, making it a presidential

signature away from becoming law. The bill increases the

maximum penalty for pipeline infractions to $2m and includes

a slew of INGAA recommendations regarding pipeline

safety, including a plan to replace cast iron gas lines with steel

lines; a timetable for implementing integrity management

principles on all pipelines located near residences, and provi-

sions for educating local responders on pipeline hazard miti-

gation. “Senate passage of the House-passed pipeline bill

paves the way for a renewal this year of a law that enhances

the safety of the nation’s pipeline system that delivers more

than half of the energy consumed by Americans,” said INGAA

ceo Don Santa in a statement. “We are confident that Presi-

dent Obama will sign this bill - one of the few energy-related

pieces of legislation to pass Congress this year - into law.”

Congressional Steel Caucus vice chairman Pete Visclosky ex-

pressed approval and disappointment with the decision ren-

dered by the US International Trade Commission last week in

regard to imports of cut-to-length carbon steel from five

countries. During a second five-year sunset review of the du-

ties, the ITC voted to keep existing antidumping and counter-

vailing duty orders in place on the plate from India, Indonesia

and Korea, and revoke orders on plate from Italy and Japan.

There could be a decline of over 3,400 wind tower installa-

tions in the US from 2012 to 2013 if a production tax credit

(PTC) is not extended, according to a report detailing the

drastic result the expiration of the PTC would have on the

growing steel end-use market of wind energy. The PTC is a

tax incentive encouraging development of wind farms that

is to expire at the end of 2012. A standard onshore wind

turbine requires 120-150 tonnes of steel, mostly plate.

People and places ThyssenKrupp Steel USA has selected current ThyssenKrupp

TWB (tailor-welded blank) ceo Christian Dohr to become

president and ceo of TK Steel USA, effective January 1. He

replaces Christoph Lackinger, who will be taking on other,

undefined responsibilities within the ThyssenKrupp Group.

Dohr has served with ThyssenKrupp for more than 20 years

and was instrumental in setting up ThyssenKrupp tailored

blanks facilities in Italy, Sweden, Turkey and Mexico, accord-

ing to a company statement.

The price of coldrolled coil continued its rise this week as The

Steel Index’s reference price CRC rose to $776/ton this week,

up from a 15 week low of $727/ton in the last week of Octo-

ber. Lead times fell to 7.1 weeks, down from 7.5 the previous

week.

TSI is the industry’s resource for independent weekly steel

and daily iron ore reference prices. For more

information, including weekly lead times, visit

www.TheSteelIndex.com

TSI Reference Price - CRC

http://www.thesteelindex.com

http://www.thesteelindex.com/



A brief history of

Triple-S Steel

Triple-S Steel Who are they?

Triple-S Steel is a Houston-based general line

service center that focuses on construction

markets. The company offers exporting

services and prides itself on its processing

services, which include sawing, shearing, laser

cutting, beveling and slitting.

What does Triple-S Steel sell?

The business offers beams, plate, angles,

channels, pipe, perforated metal, sheets, strip

and other products.

Why is the company interesting?

Triple-S Steel says that it specializes in

subdividing large, single-user industrial

facilities for use by several companies for

fabrication, manufacturing and distribution

spaces.

Tripe-S Steel regularly ships to Mexico,

Central and South America and Asia.

The company opened an office in Spain in

2010 to secure steel supply.

Triple-S Steel also strategically placed a

depot in Chile to service construction

markets.

Gary Stein, the company’s president,

received the title of Service Center

Executive of the Year in 2008. He was the

12th person to receive the distinction from

Metal Center News.

2011 Triple-S Steel adds roll forming equipment,

adding to its metal building repertoire.

1998 Triple-S acquires Knoxville, TN, operation,

offering shearing, cutting and other pro-

cessing services.

1960 Triple-S Steel Supply starts as a new and

used steel distribution yard.

For more information, visit www.sss-steel.com

1978 The company relocates to its first warehouse

in Houston.

2002 Instel Steel Distributors acquires the

Houston and San Antonio divisions.

2004 Triple-S acquires R & S Steel’s Denver and

Salt Lake City operations with more than

20,000 tons of inventory.

http://www.nucor.com

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