Steel Mills
North Star Delivering Results for BlueScope
Written by Sandy Williams
October 25, 2020
North Star BlueScope continues to shine for Australian parent company BlueScope Steel. North Star continues to ship at full capacity in the first half of FY 2021 driven by the rebound in the U.S. auto industry. Steel spreads have improved in the half due to higher HRC pricing, although earnings are expected to be somewhat lower than 2H FY 2020 due to contract lag.
After a delay due to COVID-19, construction of the third electric arc furnace at North Star is back on track. The new EAF will have a melt capacity of approximately 850,000 metric tons and a second caster. Once completed, the Delta, Ohio, mill will have an annual capacity of 3 million metric tons.
“Despite the global disruption caused by COVID-19, we’ve had a solid performance from all of our operating segments for the three months to 30 September,” said Managing Director and CEO Mark Vassella. “This is a clear demonstration of the effectiveness of BlueScope’s strategy and the resilience of our asset portfolio.
“Benchmark steel spreads have improved and demand in most of our markets is robust. This has been supported by current strength in alterations and additions activity, demand for detached housing, rapid growth in e-commerce and logistics, and the recovery of the U.S. automotive industry, which is a key end-market for North Star.”
BlueScope is expecting underlying earnings before interest and tax (EBIT) of approximately AUD 340 million ($242 million U.S.), a 30 percent decrease from the second half of FY 2020
Risks to results include the potential for additional waves of COVID-19 that could disrupt demand, supply chains and operations, said Vassella, as well as macroeconomic weakness dampening demand.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
AHMSA opens doors to potential buyers as $1.3B asset auction nears
AHMSA is opening its doors to potential buyers to tour its steel plant and mining operations in northern Mexico in preparation for the next stage of its bankruptcy process: the auction of its assets.
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!