International Steel Mills
Brazil's CSN Eyes New Galv Line, EAF Longs Mill in U.S.
Written by Michael Cowden
December 9, 2021
Companhia Siderúrgica Nacional (CSN) is considering plans to build an electric arc furnace (EAF) long products mill and a galvanizing facility for steel sheet in the United States.
That’s according to an investor presentation in which the Brazilian steelmaker said new plants in the U.S. as well as expansions in Europe and in Brazil were “under analysis.”
The relevant slide from the Dec. 8 presentation is here:
“We want to take advantage of our low leverage moment to diversify,” Reuters quoted CSN CEO Benjamin Steinbruch as saying. He also said M&A was not on the table because valuations had become too high.
CSN will decide whether to move forward with the proposed projects next quarter. Those in the U.S. are premised in part on increased demand expected from the Biden administration’s $1 trillion infrastructure plan, per Reuters.
CSN sold its U.S. operations in Terre Haute, Ind., to Steel Dynamics in 2018. But the Brazilian steelmaker maintains a presence in the U.S. via imports. That includes not only finished steel products but also semifinished slabs.
Brazil is subject to a Section 232 quota rather than the 25% tariff that most other foreign slab sources, notably Russia, must pay. That makes Brazilian slabs a key raw material for domestic slab converters.
By Michael Cowden, Michael@SteelMarketUpdate.com
Michael Cowden
Read more from Michael CowdenLatest in International Steel Mills
SSAB cites US strength but flags tariff-driven uncertainty
The Americas segment of Swedish steelmaker SSAB delivered a stable third quarter, but with weaker shipments and continuing cautious demand. Plate prices held, but tariffs, slowing end-user demand, and...
CRU: Bids made for Ilva assets
The Italian government has received 10 offers for the former Ilva integrated steel works at Taranto, but only two bidders are interested in purchasing all of the company’s assets.
Global steel production declined through August
August marked the second-lowest monthly production rate this year, down 13% from the two-year high of 166.6 million mt in March.
Algoma Steel assesses viability of US sales in wake of 50% S232 tariffs
Canadian flat-rolled steelmaker Algoma Steel is reconsidering its presence in the US market after the doubling of US Section 232 tariffs on imported steel to 50%, a company spokeswoman said.
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.