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Falling Prices, Shipments Push U. S. Steel Canada Deep Into the Red
03/15/2016 - U. S. Steel Canada (USSC) posted a CAD144 million (US$107.8 million) operating loss in 2015 due to lower shipments and declining prices, according to a court filing.
During the year, the business, the former Stelco, recorded sales of CAD1.26 billion, down 29 percent from 2014. It shipped 1.81 million tons of steel, down 22 percent from the previous year.
“As noted in previous reports of the monitor, global steel markets have faced significant challenges. The North American market has been impacted by competition from imports as well as the slowdown in the oil and gas sector, which has led a number of North American steel producers to idle mills,” wrote the court-appointed monitor in USSC’s ongoing creditor protection case.
USSC has been operating under creditor protection since September 2014 as it attempts to restructure itself. Earlier this year, it initiated a new sales and investment solicitation process.
Letters of interest were due at the end of February.
The monitor said those letters are now being reviewed. In the next phase of the process, selected bidders will be invited to meet with management and visit the mills as they complete their due diligence.
Essar Steel Algoma parent Essar Group is reportedly among the companies that have submitted bids, according to the online publication sootoday.com. Essar Steel Algoma, itself a Canadian producer, also is operating under creditor protection and has launched a sales and investment solicitation process of its own.
“As noted in previous reports of the monitor, global steel markets have faced significant challenges. The North American market has been impacted by competition from imports as well as the slowdown in the oil and gas sector, which has led a number of North American steel producers to idle mills,” wrote the court-appointed monitor in USSC’s ongoing creditor protection case.
USSC has been operating under creditor protection since September 2014 as it attempts to restructure itself. Earlier this year, it initiated a new sales and investment solicitation process.
Letters of interest were due at the end of February.
The monitor said those letters are now being reviewed. In the next phase of the process, selected bidders will be invited to meet with management and visit the mills as they complete their due diligence.
Essar Steel Algoma parent Essar Group is reportedly among the companies that have submitted bids, according to the online publication sootoday.com. Essar Steel Algoma, itself a Canadian producer, also is operating under creditor protection and has launched a sales and investment solicitation process of its own.
