Steel Products
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/7f3025ad59c874d1ab0706a94716b886.jpg)
Goncalves Bullish on Cliffs' HBI Prospects
Written by Tim Triplett
March 24, 2018
“The trend is our friend,” said Lourenco Goncalves, the chief executive of Cleveland-Cliffs, Inc., pointing to the growth of electric arc furnace (EAF) steelmaking around the world. Cliffs is on track for commercial production of hot briquetted iron (HBI) by mid-2020 at its facility under construction in Toledo, Ohio, he told executives at S&P Global Platts’ Steel Markets North America conference Tuesday in Chicago.
Cliffs’ new plant will have the annual capacity to produce 1.6 million tons of HBI, which will have a big impact on a 3-million-ton market. “To displace half of what is imported now should be an easy task,” Goncalves said.
Steel minimills that use EAFs need pure iron units to dilute the impurities in the melted scrap. HBI is a cheaper alternative to pig iron, which is produce by integrated mills in their basic oxygen furnaces (BOFs). Asked during Q&A if he is concerned about integrated producers bringing back idled capacity to produce pig iron, Goncalves noted that restarting a BOF takes a lot of time and money. “I don’t see an integrated mill restarting pig iron production to support an EAF mill that is a competitor,” he added.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/04/tim-triplett.jpeg)
Tim Triplett
Read more from Tim TriplettLatest in Steel Products
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/10/CMC-New-Logo.png)
CMC to open rebar fabrication facility in Ohio
Longs producer and metal recycler CMC plans to open a new rebar fabrication plant in Akron, Ohio.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/steel_trade.png)
US and Mexico take action to curb ‘unfair’ trade
The US and Mexico announced measures on Wednesday to prevent tariff evasion and protect North America’s steel and aluminum industries.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/gears.png)
Final thoughts
First off, we hope everyone had a safe and happy July 4th holiday, with fireworks seen and BBQs attended. Many parts of the country are quite toasty at the moment, signaling that, yes, summer has indeed arrived. And looking at our most recent survey results, the summer doldrums have arrived as well.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/12/Rig_count_pic_3-scaled.jpg)
Active rig counts recover in US, slip in Canada
US drill rig activity moved back up last week after drifting lower for four straight weeks. Meanwhile, Canadian counts slipped for the first time after a seven-week rally, according to the latest data from Baker Hughes.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/AISI.png)
AISI: US steel shipments up in May from April, off from 2023
Domestic steel shipments increased in May month over month but have fallen on-year.