When Mario Longhi took the reins of US Steel Corp. a year ago, the company was, in his words, on “a road to destruction.”
Bloated costs, expensive projects, fat compensation packages and generous labor pacts had pushed the company into the red for five consecutive years. Mr. Longhi began to cut costs, leading to last week’s announcement that US Steel was halting over $800 million in projects and the company’s Canadian operations were seeking bankruptcy protection.
An even more radical reshaping could be ahead.
“Everything is on the table,” Mr. Longhi said in his first extensive interview, with the Wall Street Journal, since becoming chief executive. One option is to move toward a minimill strategy, in which steel is made from scrap metal, usually at lower cost than using iron ore and coal.
“The world changes, and US Steel has to adapt,” Mr. Longhi said.
Chinese steel prices closed flat for the day. The price of iron ore 58% fines from India hit a high price of CNY 840.00 ($136.43) and a low price of CNY 830.00 ($134.81) per dry metric ton. Chinese HRC held its value on Monday at CNY 3,030 ($492.13) per metric ton. The price of Chinese coking coal held steady at CNY 1,390 ($225.76) per metric ton.
The steel billet cash price saw little movement on the LME at $450.00 per metric ton. For the fifth consecutive day, the steel billet 3-month price held flat on the LME at $455.00 per metric ton.
The US HRC futures contract 3-month price held steady around $642.00 per short ton. The spot price of the US HRC futures contract showed little movement on Monday at $655.00 per short ton.