Steel Mills
ArcelorMittal May Idle Partial Operations at Mexican Steel Plant
Written by Sandy Williams
March 28, 2015
ArcelorMittal may temporarily idle some of its operations at Lázaro Cárdenas, Mexico’s largest steel producer and slab exporter, according to reports by El Diario and BN Americas.
“ArcelorMittal Lázaro Cárdenas is considering a temporary idling of certain steel producing operations,” a company spokesman told BN Americas in an emailed statement. “However, we are still in discussions with various stakeholders and no official decision has been made. Any idling decision will not impact our ability to meet customer demand.”
Steel prices in Mexico have fallen 34 percent and imports have cost Mexican steel producers nearly five billion dollars, according to Alonso Ancira, outgoing president of the Mexican steel association CANACERO. CANCERO warned that that the volume of unfairly traded imports also threatens $15 billion of planned steel investments.
El Diario speculates that global overcapacity and the drop in steel prices has made steel production at Lázaro Cárdenas “unfeasible.” The threat of a shutdown is also thought to be an attempt to pressure the Mexican government to limit the volume of steel entering the country.
In December, the Economic Ministry of Mexico announced it would tighten the requirements for permit applications to import steel into Mexico. The Ministry has also launched 24 antidumping probes according to BN America.
Low oil prices are also affecting steel production and pricing in Mexico. An 11.5 percent budget cut at state oil firm Pemex is expected to result in a 10 percent reduction in steel product sales to the company. Pemex has also requested the price of steel products be lowered.
Lázaro Cárdenas facilities include a 4Mt/y pelletizing plant with four 220t electric arc furnaces, with a production capacity of 5.3Mt/y liquid steel, and two 220t ladle furnaces.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Nippon plans to double steel output at USS operations: Report
Now that it has acquired U.S. Steel, Nippon Steel is planning a significant expansion of its US operations, including the construction of a new mill and more than doubling its steel output.
Algoma fires up EAF steelmaking with first arc
Algoma Steel reached a milestone in its transformation from blast furnace to electric arc furnace (EAF) steelmaking, with its Unit One EAF achieving its first steel production this week.
Nucor holds HR list price at $910/ton
Nucor is keeping its list price for spot hot-rolled coil unchanged after last week’s shortened holiday week.
Cliffs unveils new hydrogen-powered stainless line in Ohio
CEO Lourenco Goncalves, flanked by state leaders and union reps, touted the project as proof that US manufacturing is not only alive, but also advancing.
Cliffs idles Steelton, Riverdale, and Conshohocken operations
Cliffs has idled facilities in Riverdale, Ill., and Conshohocken and Steelton, Pa.