Steel Mills

US Steel Completes Foundation at Keetac Facility

Written by Becca Moczygemba


US Steel Corp. has completed the foundation, along with the first placement of structural steel, at its direct-reduced (DR)-grade pellet production facility in Keewatin, Minn.

Completion of the $150-million Keetac project is expected later this year, with first pellets produced in 2024, the company said.

US Steel broke ground on the facility in Q3 2022, as part of its metallics strategy. The investment is a focus for the company to expand its electric-arc furnace (EAF) metallics self-sufficiency strategy. DR-pellets are essential in the production of direct-reduced iron (DRI) and hot-briquetted iron (HBI). EAF sheet mills consume a substantial amount of DRI and HBI, in addition to scrap.

Currently, US Steel uses 10% of internally sourced feedstock, and 90% external, excluding obsolete scrap. Subject to negotiations with SunCoke Energy, and additional contingencies and approvals, the company’s goal by 2024 is to achieve 40% from internal sources and 65% external, excluding obsolete scrap.

By Becca Moczygemba, becca@steelmarketupdate.com

Becca Moczygemba

Read more from Becca Moczygemba

Latest in Steel Mills