Essar Steel Algoma #7 Blast Furnace Restart Delayed

Essar Steel Algoma was to have started "blowing wind" into the #7 furnace on Wednesday of this week. However, the mill determined additional repairs to the bustle pipe were necessary and have delayed the restart until late his week or this weekend.

As of today, the mill has lost 120,000 short tons of production and are projected to lose an additional 40,000 to 56,000 short tons if the mill comes up as the mill now suggests in their note to Steel Market Update earlier today:

John - Since we last spoke we have completed a comprehensive physical inspection of the bustle pipe main and our inspection has led to additional repairs that we deem necessary. As a result, the start up timeline has been altered. We are now targeting late Friday/early Saturday to commence the start up process for No. 7 blast furnace with an expectation for usable hot metal 3 to 5 days thereafter.

We continue to ready No. 6 blast furnace as a back up in the event it is required.

Prior to the bustle pipe failure, No. 7 blast furnace was averaging 8,000 tons of hot metal per day. As of today’s date, we have lost 15 days of equivalent production.

The Plate and Strip hot mill is down for maintenance this week, having pulled ahead some previously scheduled work. Operations continue at all finishing mills. The Plate and Strip mill will resume production later next week using the existing slab inventory. No temporary layoffs have been announced at this time.

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