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    Cold snap pushes AZZ to temporarily close some locations in Southeast and Texas

    Written by Michael Cowden


    AZZ Inc. posted on its website that it had temporarily closed more than half a dozen locations on Tuesday in response to the extremely cold weather gripping much of the US.

    Locations that were temporarily closed on Tuesday included AZZ facilities in Chattanooga, Tenn.; Crowley, Hurst, Fort Worth, and Waskom, Texas; and Nashville.

    Also impacted are Precoat Metals plants in Baltimore and Jackson, Miss.

    The Fort Worth-based galvanized and coil coater said in a letter to Precoat customers on Tuesday that the decision came in response to “extreme cold” that has caused natural gas supply disruptions across the US.

    “Several utilities have issued flow restrictions that are impacting our facilities,” the company said. “These restrictions, combined with local travel limitations for employees, continue to affect our production capabilities.”

    “We anticipate ongoing impacts to production and shipping in the coming days as conditions continue to evolve,” AZZ added.

    AZZ is one of the largest independent hot-dipped galvanizers and coil coaters in the US. It also owns of Precoat Metals.

    Why it matters?

    Freezing temperatures have settled across much of the US and pushed as far south as Texas. Forecasts indicate little relief from the extreme cold over the next week.

    A similar breakout of cold weather in the first quarter of 2021 led to power cuts and unplanned outages as far south as northern Mexico. The resulting supply reduction, coupled with strong post-pandemic demand, caused flat-rolled steel prices to surge.

    Current demand does not appear to be as strong as it was in Q1’21. But supplies have been limited by lower imports stemming from higher duties and tariffs as well as lower customer inventories.

    Editor’s note: If you are aware of any weather-related outages, please let us know at smu.editorial@crugroup.com

    Michael Cowden

    Read more from Michael Cowden

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