Severstal NA began informing their customers of an issue with a gas supplier which has caused the Severstal Dearborn mill to temporarily shut down their blast furnace as well as some of their finishing equipment. Market sources have advise SMU the situation is also impacting the US Steel Great Lakes facility as well.

In a letter to their customers, Severstal NA provided the following information:

“On Friday, January 28, 2011, Severstal Dearborn was notified by its oxygen supplier they had sustained damage to critical equipment resulting in the inability to supply oxygen to Severstal and its other customers. In response thereto, we began a process of notifying our customers of this event. We have now been informed that this damage has also impacted that supplier’s ability to provide Severstal with other required industrial gases. While we are receiving a significantly reduced volume of oxygen for the time being, this event has impacted our ability to fully operate our primary steelmaking operations and, with this latest news, some of our finishing operations will be impacted as well. As previously noted, none of Severstal’s equipment has been damaged as a result of this incident.

Despite the occurrence of this Force Majeure event, we will be working with you closely to continue timely deliveries of quality products, while minimizing potential disruptions. Should we become aware of additional or different facts that could affect deliveries, we will notify you immediately.”

Steel Market Update will continue to monitor this situation closely. We have asked for statements from both Severstal and US Steel representatives.

Watch for more information on our Blog as well as our SMU newsletter which will be published again on Tuesday evening.

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