Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Global manufacturer Allegheny Technologies (ATI) has made a tentative deal regarding its labor contract with the United Steelworkers (USW) that involves nine sites and around 1,300 represented employees. 


The agreement and workers are mainly part of operations for its Advanced Alloys & Solutions segment that saw a 15.6pc drop in sales during Q1 of 2021 compared to the same quarter one year ago.


The tentative contract covers the period March 1, 2021, through February 28, 2025, and is subject to USW member ratification upon which the process to return to work will begin. The strike first began on Mar 30.


ATI continues on course with its earlier mentioned exit strategy of its standard stainless sheet products group. 


The company announced in Q4 2020, the closing of five underperforming plants by mid-2021, with two already shut down and anticipated to bring in about $50mn in cost savings starting in 2022.


ATI will also get support from its new tolling deal with JSW Mingo in Brackenridge, PA, as the carbon steel slab producer is reliant on ATI for hot-roll coil orders from its 1.5mn nt per year slab-producing EAF. 


The deal with JSW is projected to bring improved financial performance to ATI compared to its former Q4 2019 agreement with NLMK. 

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