Integrated steelmaker Cleveland-Cliffs will fully ramp its revamped No. 5 Cleveland Works blast furnace by August after nearly a half year of being down.
The company took the blast furnace down in the first quarter for what initially was going to be a 100 day maintenance to reline the furnace. The company determined that it would also work on a water treatment plant and other repairs and maintenance.
"With the additional work being done we now plan to have Cleveland Works back at full capacity in August, aligning with improved automotive steel demand," said chief financial officer Celso Goncalves.
Cleveland-Cliffs has made multiple investments over the past few years since acquiring the steelmaking assets of integrated steelmakers AK Steel and ArcelorMittal USA. Chief executive Lourenco Goncalves said a lack of parts has led to production deficits of 8mn-10mn vehicles in North America, contributing to large amounts of pent up demand for cars and trucks at some of his top customers.
"Over the past two years we at Cleveland-Cliffs have made the investments necessary to meet this oncoming onslaught of demand, and we are ready with the most advanced technical capabilities that the industry can offer including a brand new blast furnace at our Cleveland operations," Goncalves said.
He said he expects automotive volumes to improve in the second half of the year.
The company has already been working down inventories, with a reduction of 230,000 short tons (st) in the second quarter and a total reduction of 400,000st through the first six months of the year, Celso Goncalves said.
The North American auto industry is currently expected to lose the production of 348,000 vehicles in 2022 as it continues to struggle with semiconductor shortages.
