U.S. Steel to Build New Headquarters in Pittsburgh

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PNC Bank and even the Pittsburgh Penguins NHL hockey club did some major wheeling and dealing to keep U.S. Steel‘s headquarters in Pittsburgh.

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The Penguins and developer Clayco of St. Louis will build, for U.S. Steel, a 5-story, 268,000-square-foot corporate headquarters on the former Civic Arena site by September 2017. As part of the deal, the company will receive New Markets tax credits and Local Economic Revitalization Tax Assistance (LERTA) tax abatements. The project potentially could qualify for a maximum of $7.5 million in property tax abatements over 10 years, depending on what is approved by the city, Allegheny County and Pittsburgh schools.

U.S. Steel plans to lease the building for 800 workers for at least 18 years from a partnership that includes the Penguins and Clayco. Officials did not disclose the anticipated development costs or terms of the lease, but said construction would begin next summer. PNC’s former CEO, Jim Rohr, helped broker the deal between the Penguins and U.S. Steel.

The existing U.S. Steel Tower in downtown Pittsburgh will remain and part of it will become a U.S. Steel museum.

The cash price of steel billet rose 7.5% on Monday, November 24, making it the day’s biggest mover. After 3 days of flat prices on the LME, it closed at $500.00 per metric ton. After a few days of little change, the 3-month price of steel billet jumped 5.5% on the LME, landing at $480.00 per metric ton.

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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 ($137.16) and a low price of CNY 830.00 ($135.52) per dry metric ton. The price of Chinese HRC saw essentially no change for the fifth day in a row, remaining around CNY 2,970 ($484.95) per metric ton. The price of Chinese coking coal saw little movement at CNY 1,390 ($226.96) per metric ton.

The 3-month price of the US HRC futures contract showed little movement yesterday at $629.00 per short ton. The spot price of the US HRC futures contract held steady on Monday, remaining around $634.00 per short ton.

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