Capex Momentum Builds at U.S. Steel Mills

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Researched by Industrial Info Resources (Sugar Land, Texas)--All of a sudden, steel is hot again. Well, maybe not all of a sudden, but there is definitely a noticeable uptick in capital spending plans at steel manufacturing mills in the U.S. Improving economics, a scrutinizing governmental policy on imports and speculation regarding future infrastructure needs are contributing to the increase. Industrial Info is tracking 285 projects totaling more than $11.2 billion at steel mills in the U.S., as part of the Metals & Minerals Market Intelligence Platform. About 91% of that total spend is for capital projects and the remaining 9% is for maintenance shutdown work.

The two largest U.S. steel makers, Nucor Corporation (NYSE:NUE) (Charlotte, North Carolina) and United States Steel Corporation (U.S. Steel) (NYSE:X) (Pittsburgh, Pennsylvania) are both planning increased capital spending (capex) in 2018. Nucor just announced plans to build two steel rebar manufacturing micro mills in the South; one in Missouri and the other at an undermined site in the Southeastern U.S. They will be Nucor's first new plants since the company started up the Nucor Direct Reduced Iron plant in Louisiana in 2013. For more information, see Industrial Info's project report on the steel rebar micro mill project in Sedalia, Missouri. For related information, see September 18, 2017, article - Nucor Approves New Steel Micro Mill and November 22, 2017, article - Nucor to Expand Illinois Steel Mill.

U.S. Steel is spending more than $1 billion on a revitalization plan for its mills. The company recently announced it was accelerating capex plans for 2018. The revitalization plan consists of mainly small projects, one of the largest of which is a scheduled reline of the #3 blast furnace at Edgar Thomson Steel Works in Braddock, Pennsylvania. For more information, see Industrial Info's project report. For related information, see November 21, 2017, article - U.S. Steel to Ramp Up Revitalization Program in 2018.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.