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Researched by Industrial Info Resources (Sugar Land, Texas)--Despite some recent improvement in demand, U.S. steel producers continue to grapple with a market that has fundamentally changed within a matter of months as a result of the COVID-19 pandemic. Industrial Info is tracking more than $4.3 billion worth of projects at U.S. steel mills that have been delayed or canceled for reasons related to the pandemic, about 70% of which is attributed to projects in Ohio or Pennsylvania.
Domestic steel production fell 29.4% year-over-year to 5.1 million tons in July, according to the World Steel Association, while global prices remained relatively low. Although domestic raw steel production has been rising on a weekly basis throughout the summer amid improvement in capacity utilization, according to a recent report from the American Iron and Steel Institute, production remains low when compared with any point in 2019.
Click on the image at right for a graph detailing the investment values for U.S. steel-manufacturing projects, grouped by plant owner, that have been delayed or otherwise affected by COVID-19 precautions.
One of the highest-valued projects to face delays is now set to begin construction toward the end of the year: Petmin Limited's (Bryanston, South Africa) estimated $474 million nodular pig iron plant in Ashtabula, Ohio. Petmin plans to produce more than 570,000 tons per year of material used in specialty metallic castings commonly used in automobiles, trains, construction equipment, power plants and many other industrial properties. The project had been slated to begin construction in June, but its kickoff date was pushed back to this month, and more recently to December. For more information, see Industrial Info's project report.
Even if the Ashtabula project is in better shape to begin construction, it is not out of the woods. Ohio's Environmental Protection Agency granted Petmin's request for a revised air permit on July 17, but Ashtabula County Water Watch, which comprises area residents, announced it would file an appeal, according to Ohio's Star Beacon. The appeal cites a number of differences between the initial permit and the revised permit, including increases in the limits of nitrogen oxides, particulate matter and carbon dioxide equivalents, according to the newspaper.
United States Steel Corporation (NYSE:X) (U.S. Steel) (Pittsburgh, Pennsylvania), which trails only Nucor Corporation (NYSE:NUE) (Charlotte, North Carolina) in domestic steel production, had to push back a long list of casting line and cogeneration projects at its Mon Valley Works in Clairton, Pennsylvania, due to COVID-19 precautions, including an estimated $200 million addition of a cogeneration facility at the complex's coke plant. As part of a broader, $1.2 billion project, the 94-megawatt (MW) facility would reduce emissions of sulfur dioxide and nitrogen oxide at the casting and rolling complex. For more information, see Industrial Info's project report.
While U.S. Steel accounts for the most spending of any one steel manufacturer on COVID-delayed projects, Nucor accounts for the highest number of projects, which include two at its flat-rolled steel minimill in Trinity, Alabama: $100 million in melt shop upgrades and additions and $100 million in galvanizing line additions. Nucor plans to increase production at the facility from 3.2 million to 3.6 million tons per year, through the replacement of aging transformers and the addition of casting segments and a 500,000-ton-per-year galvanizing line. For more information, see Industrial Info's project reports on the melt shop and galvanizing line.
Gerdau S.A. (NYSE:GGB) (Sao Paulo, Brazil), another leading producer in the Americas, was forced to idle its specialty steel bars mill in Fort Smith, Arkansas, due to facility closures related to the pandemic, particularly in the automotive sector. Among the associated projects canceled was a series of refractory rebuilds for electric arc furnaces that were designed to improve efficiency. For more information, see Industrial Info's project report.
In addition to the above-mentioned capital-spending projects, Industrial Info is tracking almost two dozen maintenance-related projects at U.S. steel mills that have been delayed or canceled due to the COVID-19 pandemic. Click here for a list.
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/.
Domestic steel production fell 29.4% year-over-year to 5.1 million tons in July, according to the World Steel Association, while global prices remained relatively low. Although domestic raw steel production has been rising on a weekly basis throughout the summer amid improvement in capacity utilization, according to a recent report from the American Iron and Steel Institute, production remains low when compared with any point in 2019.
Click on the image at right for a graph detailing the investment values for U.S. steel-manufacturing projects, grouped by plant owner, that have been delayed or otherwise affected by COVID-19 precautions.One of the highest-valued projects to face delays is now set to begin construction toward the end of the year: Petmin Limited's (Bryanston, South Africa) estimated $474 million nodular pig iron plant in Ashtabula, Ohio. Petmin plans to produce more than 570,000 tons per year of material used in specialty metallic castings commonly used in automobiles, trains, construction equipment, power plants and many other industrial properties. The project had been slated to begin construction in June, but its kickoff date was pushed back to this month, and more recently to December. For more information, see Industrial Info's project report.
Even if the Ashtabula project is in better shape to begin construction, it is not out of the woods. Ohio's Environmental Protection Agency granted Petmin's request for a revised air permit on July 17, but Ashtabula County Water Watch, which comprises area residents, announced it would file an appeal, according to Ohio's Star Beacon. The appeal cites a number of differences between the initial permit and the revised permit, including increases in the limits of nitrogen oxides, particulate matter and carbon dioxide equivalents, according to the newspaper.
United States Steel Corporation (NYSE:X) (U.S. Steel) (Pittsburgh, Pennsylvania), which trails only Nucor Corporation (NYSE:NUE) (Charlotte, North Carolina) in domestic steel production, had to push back a long list of casting line and cogeneration projects at its Mon Valley Works in Clairton, Pennsylvania, due to COVID-19 precautions, including an estimated $200 million addition of a cogeneration facility at the complex's coke plant. As part of a broader, $1.2 billion project, the 94-megawatt (MW) facility would reduce emissions of sulfur dioxide and nitrogen oxide at the casting and rolling complex. For more information, see Industrial Info's project report.
While U.S. Steel accounts for the most spending of any one steel manufacturer on COVID-delayed projects, Nucor accounts for the highest number of projects, which include two at its flat-rolled steel minimill in Trinity, Alabama: $100 million in melt shop upgrades and additions and $100 million in galvanizing line additions. Nucor plans to increase production at the facility from 3.2 million to 3.6 million tons per year, through the replacement of aging transformers and the addition of casting segments and a 500,000-ton-per-year galvanizing line. For more information, see Industrial Info's project reports on the melt shop and galvanizing line.
Gerdau S.A. (NYSE:GGB) (Sao Paulo, Brazil), another leading producer in the Americas, was forced to idle its specialty steel bars mill in Fort Smith, Arkansas, due to facility closures related to the pandemic, particularly in the automotive sector. Among the associated projects canceled was a series of refractory rebuilds for electric arc furnaces that were designed to improve efficiency. For more information, see Industrial Info's project report.
In addition to the above-mentioned capital-spending projects, Industrial Info is tracking almost two dozen maintenance-related projects at U.S. steel mills that have been delayed or canceled due to the COVID-19 pandemic. Click here for a list.
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/.
