Steel Mills
U.S. Steel to Supply Algoma with Iron Ore for Next Four Years
Written by Sandy Williams
May 19, 2020
U.S. Steel announced a four-year agreement to sell a “substantial volume” of iron ore pellets to Algoma Steel in Ontario, Canada. The purchase agreement runs from 2021 through 2024 and provides a new long-term customer for U.S. Steel’s Minnesota mines.
Monday’s announcement follows an iron ore purchase agreement with Stelco in April that gives Stelco an option to purchase a 25 percent interest in U.S. Steel’s Minntac iron ore operations.
“Today’s announcement is another example of the continued execution of our ‘best of both’ integrated and minimill strategy. The asset revitalization investments we made across our critical steelmaking assets over the past few years are resulting in enhanced safety, quality, delivery and cost performance as we build on the cost and capability benefits of being an integrated producer,” said CEO David Burritt.
“As we complete our electric arc furnace in Alabama and ultimately continue with our investments in endless casting and rolling at Mon Valley Works and the upgrades to the hot strip mill at Gary Works, we will have fundamentally repositioned our footprint to be the only ‘best of both’ steel producer for the multiple stakeholders that count on U.S. Steel. We look forward to continuing to serve current customers while gaining market share in strategic end markets, like we have done today with our newest iron ore customer.”
Algoma Steel CEO Michael McQuade remarked on the agreement, “This contract provides Algoma Steel with a competitive iron ore supply that will sustain our business through the steel market cycle.”
A spokesperson for Algoma added that the agreement with U.S. Steel is in addition to Algoma’s existing contract with Cleveland-Cliffs and will complete the company’s iron ore requirements.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
USW seeks clarity on USS plans for Granite City Works
The United Steelworkers union has asked U.S. Steel to elaborate on its Granite City Works plans following reports that the steelmaker is ending processing at the facility.
Nucor maintains plate prices, opens October order book
Nucor aims to keep plate prices flat for a seventh straight month with the opening of its October order book.
ArcelorMittal Mexico to import from sister mills as it works to resume DRI production
ArcelorMittal has partially restarted operations at its direct reduction plant in Lazaro Cardenas, Michoacan. An explosion on Aug. 18 rocked the massive steelworks on Mexico’s Pacific coast, impacting production of direct-reduced iron (DRI).
Fall maintenance outages are coming in hot
Labor Day has passed, the sun is starting to set a little earlier each day, and cooler weather has begun to find its way down to many of us across North America. And you know what that means for the steel industry… Fall maintenance outages!
AISI: Domestic steel production ticks up
US raw steel production ticked up in the week ending on Sept. 6 after a decrease the week before, according to the most recent data from the American Iron and Steel Institute (AISI).