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Released October 18, 2016 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. steel industry is facing a variety of challenges, including low commodity prices and tough competition from imports, especially China. Despite a string of public-policy wins, domestic manufacturers are finding profits thinner and ever more elusive.
The American Iron and Steel Institute recently reported that production from the beginning of the year through September stood at 67.17 million tons, a 1.8% decrease from the same period in 2015--itself believed to be a weak year for the domestic steel industry. The institute also reported that total industry utilization through September was at 71.8% of capacity, down from 72.1% in the same period of 2015.
Recently, the industry notched up some policy victories when the U.S. federal government agreed to enforce anti-dumping duties on three key categories: hot-rolled, cold-rolled and corrosion-resistant products. But four major U.S. steel producers recently filed petitions with the U.S. Department of Commerce, alleging that China is circumventing some of the recently imposed the anti-dumping orders by routing shipments through Vietnam. For more information, see Industrial Info's September 26, 2016, article - U.S. Steel Producers Say Chinese Rivals Ducking Anti-Dumping Fees.
Currently, there are $9.36 billion in active steel-mill projects under development in North America, according to Industrial Info's Metals & Minerals Industry Intelligence. One of the highest-valued active steel-mill projects in the U.S. is under construction: Big River Steel LLC's (Osceola, Arkansas) $900 million grassroot steel minimill in Osceola . The plant would produce 1.5 million tons per year of flat-roll and low-alloy, high-strength steel for the automotive, oil, gas and power-generation industries. The facility began processing steel earlier this year, with the commissioning of its batch anneal furnaces and skin pass mill, according to Arkansas Business. For more information, see Industrial Info's project report.
The company also has proposed a $400 million second phase, which would double capacity through the addition of a second 150-ton electric-arc furnace; a second 150-ton ladle metallurgy furnace; and a second casting strand. For more information, see Industrial Info's project report.
But some projects are under construction in name only. For years, Essar Steel Minnesota LLC, a subsidiary of Essar Steel Minnesota LLC (Hibbing, Minnesota), has been struggling to build a $1.1 billion pellet plant and restart an adjoining mine in Nashwauk, Minnesota, and has even proposed a $600 million second-phase expansion to the pellet plant. The first phase would produce 4.1 million tons per year of iron pellets, while the second would produce an addition 2.9 million tons.
According to the regional Business North, Essar's "half-built project has been under construction for nearly a decade" and has faced numerous work stoppages due to non-payment of contractors, among other factors. To make matters worse, Essar has been under Chapter 11 bankruptcy protection since July. For more information, see Industrial Info's project reports on the proposed Phase I and Phase II.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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/.
The American Iron and Steel Institute recently reported that production from the beginning of the year through September stood at 67.17 million tons, a 1.8% decrease from the same period in 2015--itself believed to be a weak year for the domestic steel industry. The institute also reported that total industry utilization through September was at 71.8% of capacity, down from 72.1% in the same period of 2015.
Recently, the industry notched up some policy victories when the U.S. federal government agreed to enforce anti-dumping duties on three key categories: hot-rolled, cold-rolled and corrosion-resistant products. But four major U.S. steel producers recently filed petitions with the U.S. Department of Commerce, alleging that China is circumventing some of the recently imposed the anti-dumping orders by routing shipments through Vietnam. For more information, see Industrial Info's September 26, 2016, article - U.S. Steel Producers Say Chinese Rivals Ducking Anti-Dumping Fees.
Currently, there are $9.36 billion in active steel-mill projects under development in North America, according to Industrial Info's Metals & Minerals Industry Intelligence. One of the highest-valued active steel-mill projects in the U.S. is under construction: Big River Steel LLC's (Osceola, Arkansas) $900 million grassroot steel minimill in Osceola . The plant would produce 1.5 million tons per year of flat-roll and low-alloy, high-strength steel for the automotive, oil, gas and power-generation industries. The facility began processing steel earlier this year, with the commissioning of its batch anneal furnaces and skin pass mill, according to Arkansas Business. For more information, see Industrial Info's project report.
The company also has proposed a $400 million second phase, which would double capacity through the addition of a second 150-ton electric-arc furnace; a second 150-ton ladle metallurgy furnace; and a second casting strand. For more information, see Industrial Info's project report.
But some projects are under construction in name only. For years, Essar Steel Minnesota LLC, a subsidiary of Essar Steel Minnesota LLC (Hibbing, Minnesota), has been struggling to build a $1.1 billion pellet plant and restart an adjoining mine in Nashwauk, Minnesota, and has even proposed a $600 million second-phase expansion to the pellet plant. The first phase would produce 4.1 million tons per year of iron pellets, while the second would produce an addition 2.9 million tons.
According to the regional Business North, Essar's "half-built project has been under construction for nearly a decade" and has faced numerous work stoppages due to non-payment of contractors, among other factors. To make matters worse, Essar has been under Chapter 11 bankruptcy protection since July. For more information, see Industrial Info's project reports on the proposed Phase I and Phase II.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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/.
