Steel Mills
ArcelorMittal Mexico's Hot Strip Mill Ramping Up on Schedule
Written by David Schollaert
December 15, 2021
ArcelorMittal Mexico anticipates a run rate of roughly 70% by year’s end at its new hot strip mill in the Michoacan province.
Executives lauded the production ramp-up of the new 2.75-million-ton hot strip mill during the company’s earnings call late last week, noting the facility’s output could be around 1.50 to 1.75 million tons in 2022 at its steelmaking complex in Lazaro Cardenas.
“The ramp-up is progressing well,” said Genuino Christino, Arcelor’s executive VP and CFO. “Our expectation is that in the second half we should be reaching a 60% to 70% run rate.”
Due to the steadily increased run rate, the Luxembourg-based steelmaker anticipates a strong earnings contribution for the 2022 calendar year from the steelmaking complex.
“By the end of 2023, we should be really running full out,” added Christino. “We clearly expect good progress this year, good contribution, and then more in 2023.”
ArcelorMittal’s new hot strip mill is one of a several sheet capacity expansions underway in North America. Details on that new capacity can be found on SMU’s new capacity table. The more than 20 million tons of new capacity displayed there should be read in conjunction with SMU’s blast furnace status table. The latter provides some important context: how much integrated capacity has been idled over the last decade.
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
Read more from David SchollaertLatest in Steel Mills
Nucor lowers 2024 output estimate for Brandenburg plate mill
Nucor has lowered the 2024 production estimate for its Brandenburg, Ky., plate mill due to soft market conditions.
SSAB adjusts output in weak Q3, readies for Q4 rebound
SSAB said lower plate prices in the US were the primary reason for reduced results in the second quarter. With a dismal Q3 outlook, the Swedish steelmaker is adjusting production across its facilities. That includes moving up its annual US mill outage in anticipation of a better Q4. SSAB Americas Revenues in the Americas segment […]
Topalian puts focus on “unfair” trade, eyes USMCA partners
Nucor’s top executive expressed concerns over unfair trade practices, highlighting increased steel imports from Mexico and Canada.
Cliffs sees close of Stelco buy, bottom to steel tags, and Mexico out of USMCA
Cleveland-Cliffs expects its acquisition of Canada’s Stelco to close later this year, which will help the the Cleveland-based steelmaker as a bottom to steel tags nears.
Nucor posts lower Q2 earnings, predicts tough Q3 too
Nucor recording lower second quarter earnings on falling steel prices. And the Charlotte, N.C.-based predicted that profits would be lower still in the third quarter, primarily because of weaker results from its steel mills divisions.