U.S. Steel Hits the Pause Button on Its New EAF
12/22/2015 - United States Steel Corporation is halting work on its new electric arc furnace (EAF), saying that the steel and energy markets are simply too weak to support the project.
In a statement, the company pointed out that oil prices hit an eight-year low on 14 December, the same week the U.S. rig count fell to 709, a 16-year low.
“The company continues to feel the effect of these energy market conditions, along with low steel prices and continued high levels of imports,” it said.
U. S. Steel announced the project in March, saying that it would invest US$230 million in the furnace as part of its Carnegie Way transformation, an initiative meant to return the steelmaker to profitability.
The furnace, which is designed to make 1.6 million tons of steel annually, is being installed at its Fairfield, Ala., USA, works. Construction was to have been completed in the third quarter of 2016.
The new furnace is replacing the facility’s idled blast furnace, which U. S. Steel permanently shut down in November.
Other components of the steel works – its pipe mill and the No. 5 coating line – continue to operate. U. S. Steel’s Double G hot-dip galvanizing joint venture in nearby Jackson, Miss., USA, also continues to operate.
The company said it will resume work on teh EAF when market conditions improve.
“The company continues to feel the effect of these energy market conditions, along with low steel prices and continued high levels of imports,” it said.
U. S. Steel announced the project in March, saying that it would invest US$230 million in the furnace as part of its Carnegie Way transformation, an initiative meant to return the steelmaker to profitability.
The furnace, which is designed to make 1.6 million tons of steel annually, is being installed at its Fairfield, Ala., USA, works. Construction was to have been completed in the third quarter of 2016.
The new furnace is replacing the facility’s idled blast furnace, which U. S. Steel permanently shut down in November.
Other components of the steel works – its pipe mill and the No. 5 coating line – continue to operate. U. S. Steel’s Double G hot-dip galvanizing joint venture in nearby Jackson, Miss., USA, also continues to operate.
The company said it will resume work on teh EAF when market conditions improve.
