U.S. Steel Corp.’s cost advantage over competitors from owning its iron ore mines is shrinking as the price of the commodity used to make steel sinks to a four-year low.
Analysts said iron ore’s decline to $70 a metric ton puts pressure on the Downtown-based steelmaker because competitors will benefit from lower raw material costs that U.S. Steel has long enjoyed. That pressure will mount as steel prices follow iron ore prices lower, especially helping competitors with lower production costs such as Nucor Corp., U.S. Steel’s chief rival.
“The U.S. Steel guys are going to have to work real hard to separate the revenue declines from external forces,” said John Tumazos of Very Independent Research of Holm-del, N.J. “Everything they’ve done in the last two years to cut costs was necessary, but everything points to more cost cuts.”
Under CEO Mario Longhi’s leadership, the Downtown-based steelmaker has closed mills, saved $500 million by halting an iron ore expansion project in Keewatin, Minn., relinquished control of its money-losing Canadian unit and saved $495 million under its Carnegie Way initiative to cut costs and return to profitability.
York’s budget woes have set off a scramble to find ways to save positions in the departments that could face the deepest losses — police and fire — and triggered a whirlwind of questions about what would happen to the city if a balanced budget can come only at the cost of cutting public safety personnel.
Mayor Kim Bracey‘s budget, which she introduced Tuesday, would cut 46 positions in the police department and eight fire-fighting jobs, and would cut the city’s work force from 412 employees in 2014 to 315 next year, documents show. Bracey said she was faced with few options and asked community partners, legislators and the county for outside help.
As of Friday, “no one has knocked on the door,” she said.
She has called for union concessions. Bracey said she will meet with fire union President Fred Desantis on Monday, and the city already is in negotiations with the Fraternal Order of Police. Police union president Mike Davis said he is “committed” to reaching an agreement before the end of the year.
A week after a report found that dams in Lancaster County and Maryland are no longer trapping polluting farm and urban stormwater runoff, the Maryland Department of the Environment says it plans to deny a water-quality permit renewal to the Conowingo Dam.
Exelon, the owner of the hydroelectric dam on the Susquehanna River in Cecil County, Maryland, has been seeking relicensing renewal from the Federal Energy Regulatory Commission.
The dam also needs a water-quality permit from Maryland to operate.
The state’s Department of the Environment says Exelon hasn’t fully supported its contention that the dam’s reduced ability to trap sediment is not harming the Chesapeake Bay, about 10 miles downriver, the Associated Press reported.
WILKES-BARRE — Saying his comments were misunderstood, Mayor Thomas Leighton said Friday he has not yet decided on running for another term.
Leighton, a Democrat, will begin the fourth and final year of his third term in January. He said he will discuss whether to run again with his wife and children over the holidays, make a decision and announce it in February as he has previously done.
“No decision has been made,” he said Friday.
Held hostage for a year by hope that they might snag a casino license, two pieces of prime central Philadelphia real estate lost that gamble this week – but may yet cash in, as all eyes await Plan B for both locations in a hot downtown market.
Developers who had proposed casinos at Eighth and Market Streets and the former Inquirer Building at Broad and Callowhill Streets said they had no alternate plans after learning Tuesday that the city’s second gaming license would instead go to a site near the sports arenas in South Philadelphia.
But with new apartment and retail development deals being inked virtually every week in and around Center City without public subsidy, it should not be long before new plans are hatched for both, as long as property owners agree to quick action, officials and market watchers said.
One top city official said market conditions were so favorable to development that the Nutter administration would have little patience if movement were not swift at one of the locations, which has remained inert for two decades as repeated plans have fizzled: the open-air lot at Eighth and Market owned by Ken Goldenberg and other investors.