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Hurricane Harvey Forces Some Mills to Close; Others Remain Open

"Houston is a mess right now beyond anything that anybody could contemplate," one energy tubulars trader told American Metal Market. "Plant operations and heat-treat operations are shut down, and nobody's at work — so nobody knows for how long," the trader said. 

According to AMM, the Borusan Mannesmann tube mill and the JSW Steel (USA) plate and pipe mill in Baytown, Texas, both are closed. At JSW, a volunteer team has been working to maintain the facility through the storm. 

In Bay City, Texas, the new Tenaris seamless mill, which hasn’t yet fully opened but has been finishing pipe, closed on Monday due to a mandatory evacuation order. 

Elsewhere, Gerdau Long Steel North America's Beaumont, Texas, mill escaped the flooding because it sits on high ground, according to news and pricing provider S&P Global Platts. But shipping and receiving have been disrupted, a spokeswoman told Platts. 

Commercial Metals Company's Seguin, Texas, mill, too, was largely unaffected by the storm and is operating normally. 

"We do expect some shipments for the month to be pushed out due to the rain and flooding along the coastal areas of Texas and Louisiana," the company told Platts.  

In Corpus Christi, Texas, voestalpine’s new hot briquetted iron plant sounded what it called a "cautious all-clear." 

"All inspections to date have turned up only slight damage to buildings and infrastructure. Key plant elements remain largely intact. A 600-m-long warehouse and its roof, in particular, remained unscathed except for a few windows and doors," the company said in a statement.  

"Plant technicians are currently recording the damage and will initiate the necessary repairs during the course of next week. Due to the construction and technological storm protection measures that are in place, the hurricane did not inflict more serious damage on the direct reduction plant."

Nevertheless, the broader impacts to the industry remain to be seen — the storm dumped a year’s worth of rain on the region in five days. And it’s continuing to fall.  

"We are very clearly looking at one of the costliest natural disaster events in this country's history, but until Harvey fully subsides and the totality of the damage is realized, we aren't going to know a specific cost value," Steve Bowen, a meteorologist with AonBenfield, told the news and entertainment site Mashable.