U.S. Steel Industry’s Future Project Spending Increases to More Than $5 Billion

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Researched by Industrial Info Resources (Sugar Land, Texas). Since our last report on the U.S. steel industry (see related December 1, 2005 news article - U.S. Steel Manufacturing Industry Evaluates $2.8 Billion in Active Capital & Maintenance Projects Going in 2006), project activity has increased from 125 projects up to 196 projects scheduled to begin construction in 2006 or beyond. The total investment value (TIV) for these projects has jumped up to more than $5 billion indicating a healthy and growing market for project spending activity at U.S. steel mills.

Demand for steel has recently risen, to the delight of scrap steel recyclers, which are scrambling to meet increased inquiries, especially in the Chicago area. The increase in demand has caused Mittal Steel USA (East Chicago, Illinois) to announce a restart next week for its No. 6 blast furnace at the Indiana Harbor Steel Works in East Chicago, Indiana. The 2,500-ton per day (Ton/day) No. 6 blast furnace will join two other operating furnaces at Indiana Harbor; the 2,500-Ton/day No. 5 blast furnace and the 11,000-Ton/day No. 7 blast furnace, bringing the company’s operating blast furnace total to ten nationwide.

When grouping the top ten states for active steel mill project spending, Ohio leads the way with almost $1 billion from seventeen projects currently under development.

Click on the image at right to view a chart showing the Top 10 States for Steel Mill Project Spending

Not known as a big steel producing state, Mississippi gets its day in the sun as second on the Top 10 list, while construction continues on SeverCorr’s new $700 million steel mill in Columbus, Mississippi.

Pennsylvania, which has the most projects of any state in the Top 10 list, has $788 million in steel mill project work planned. Other states rounding out the Top 10 list include Indiana, Illinois, Michigan, Alabama, Arkansas, Kentucky, and Texas.

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