Steel's sudden and steep descent

Published: Jul 1 2009 9:40AM

The road to what U.S. Steel top executive John P. Surma calls "40-percent Land" is paved with the idling or shutdown of one facility after another across America's steelmaking map. The following tables, abstracted from AMM's archives, trace the speed and breadth with which the economic downturn throttled steel demand and output.  The listings, as comprehensive as AMM's archives allow, document the expanding impact of the financial crisis and provide a timeline tracking the plunge—to 43 percent—in the industry's year-to-date capability utilization rate.

  Operation affected Action Operation info Details Current status May 2009 AK Steel Corp. Ashland, Ky. Will idle most of Ashland Works in late July or early August Produces steel slabs that are converted to hot rolled coils at AK’s Middletown Works Plant is likely to remain idled at least through the end of 2009   ArcelorMittal Mines Canada Mont-Wright, Quebec, iron ore mine Shutting production for four weeks starting early June   Encouraging workers to take annual vacations during the shutdown   ArcelorMittal Mines Canada Port-Cartier, Quebec, pellet plant Shutting production for four weeks starting early June       ArcelorMittal USA Inc. Cleveland Temporarily idled Has capacity to produce 5.1 million tons of steel annually Resulted in layoff of 1,400 of its 1,700 workers Idled ArcelorMittal USA Inc. Georgetown, S.C., wire rod mill Will indefinitely cease operations in July Has capacity to produce 800,000 tons of wire rod annually Resulting in layoff of 242 employees Had recalled 240 workers in mid-April after it ceased operations of the plant in March 2009 ArcelorMittal USA Inc. Indiana Harbor Works Will indefinitely idle iron producing operations on west side of plant starting in July   Will affect 978 employees   ArcelorMittal USA Inc. Minorca iron ore mine Extends maintenance shutdown through early August Produces about 2.8 million tons of iron ore pellets annually Resulted in temporary layoff of 136 employees   ArcelorMittal USA Inc. Monessen, Pa., metallurgical coal plant Hot idle July 5   Will affect most of plant’s 172 workers   ArcelorMittal USA Inc. Warren, Ohio, coke plant Closing for indefinite period starting July 12 Warren has capacity to produce 550,000 tonnes of coke annually Will result in layoff of 68 hourly employees   Evraz Inc. NA Evraz Oregon Steel plate mill To be idled at least two weeks in June The West Coast’s only producer of discrete plate, with capacity to produce 1.2 million tons of plate and coil annually Could be idled as long as four weeks if market conditions remain weak   JSW Steel Ltd. Baytown, Texas, plate rolling mill Considering mothballing the plate mill but continue operating its coating and double jointing lines Has capacity to produce 1.2 million tons of plate and coil annually Decision is expected by mid-June. Operating Severstal International Severstal Warren Indefinitely idled Has capacity to produce 1 million tonnes of hot rolled steel and 400,000 tonnes of galvanized annually Resulted in 1,200 layoffs Idled Severstal International Severstal Wheeling Inc. Temporarily idled cold-rolling and coating operations Has capacity to produce 3.1 million tonnes of hot rolled, 600,000 tonnes of cold rolled and 540,000 tonnes of galvanized steel annually Brings total layoffs at Wheeling to 1,900   Shiloh Industries Liverpool Drive, Valley City, Ohio, plant Permanently close Steel stamper and toll processor About 110 layoffs set to begin June 22; Shiloh’s fourth round of layoffs since autumn 2008   Tenaris Algoma Tubes Inc. Sault Ste. Marie, Ontario, seamless pipe mill Restarted May 20 Recalling some of the 280 workers laid off in March when the facility was temporarily idled     U.S. Steel Corp. Fairfield Works Temporarily idled hot end Produces rounds used for seamless pipe products Resulted in 1,711 layoffs   U.S. Steel Corp. Lake Erie Works Will idle coke ovens for an indefinite period   Expected in mid-June; would result in layoff of more than 100 workers   U.S. Steel Corp. Minntac taconite mine Temporarily idled Has capacity to produce 16 million tons of taconite pellets annually Announced shutdown from May 10 to June 1, and plans to shut the mine again June 28 to July 12   Worthington Industries Inc. Not yet identified Temporarily idling four processing locations Steel processor Idling four facilities for one week between July and August     Operation affected Action Operation info Details Current status April 2009 AK Steel Corp. Rockport, Ind. Idled finishing plant week of April 6   Resulted in 116 layoffs   ArcelorMittal Montreal Inc. Contrecoeur, Quebec Temporarily idled direct-reduction...

This is a preview of the article. The full article is available only to our subscribers and trial users.

Not registered AMM.COM user yet?

Subscribe today!

Every morning, every minute — no matter how often you follow the markets, there's an AMM subscription to fit your needs.

Subscribe Try
Sign up for the AMM Daily Alert