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AK Steel to idle Dearborn Works

  • Spanish Market: Coking coal, Metals
  • 27/03/20

Steelmaker AK Steel will shut down its Dearborn Works in Detroit as steel mills that supply the automotive market are hammered by sudden coronavirus outbreak-related shutdowns.

The 2.2mn short ton (st)/yr blast furnace will stop running beginning next week for an undetermined length of time, according to a letter from the mill's local union president posted online.

The mill makes flat rolled products for the US automotive industry and was recently acquired by Cleveland-Cliffs in its purchase of integrated steelmaker AK Steel.

All automakers in the US have announced some level of closures in the last week.

The earliest possible restart for automakers are by Fiat-Chrysler Automobiles (FCA) and General Motors (GM), who could reopen plants as early as next week. Ford recently announced a plan to restart a plant in Mexico on a limited shift on 6 April while restarting some of its US plants on 14 April.

There was no mention plans for the company's 2.3mn st/yr Middletown Works.

The idling is the latest in the US. Integrated steelmaker US Steel announced today that it was idling a blast furnace each at its Gary Works in Indiana and Granite City Works near St Louis, Missouri.

ArcelorMittal said at the beginning of the week that it would idle two blast furnaces, one each in Canada and the US.

Gerdau idled the melting and rolling operations at its three special steel mills in the US, only to announce today that it will reopen one in Arkansas over the weekend.


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13/12/24

US river lock closures may delay product deliveries

US river lock closures may delay product deliveries

Houston, 13 December (Argus) — Mid-Mississippi River and Illinois River locks are expected to undergo long-term closures starting next month, slowing down some commodity deliveries. Three locks around the St Louis, Missouri, and Granite City, Illinois, region will be closed for repairs for up to three months starting 1 January, according to the US Army Corps of Engineers. The Mel Price Main Lock, where the Illinois River flows into the Mississippi River, and Lock 27's main lock, where the Missouri flows into the Mississippi, will also be closed from 1 January through 1 April. The Mel Price Main Lock will commence the final phase of replacement for its upstream lift-gate. Replacement of embedded metals will occur during the closure for Lock 27's main lock. Lock 25 will have a shorter closure date for a sill beam and guide-wall concrete installment from 1 January through 2 March. This is the first lock on the upper Mississippi River, after the Illinois River. These closures are expected to be more of a nuisance than a deterrent for commodity traffic, according to barge carriers. Ice in the river is likely to have melted by mid-March, which may cause barge carriers to wait in the St Louis harbor for the locks to open. Two other lengthy closures are anticipated on the Illinois River beginning on 28 January. The Lockport Lock — the second to last lock on the Illinois River — will be fully closed from 28 January through 25 March for full repairs to the sill and seal of the lock. The prior lock, Brandon Road Lock, will be closed during weekdays over the same time period, but traffic can pass through over the weekend. The lock closures and repairs are expected to delay some barge shipments, specifically to the Great Lakes and Burns Harbor. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

EU could tighten steel safeguard in impending review


13/12/24
13/12/24

EU could tighten steel safeguard in impending review

London, 13 December (Argus) — The European Commission could significantly tighten its existing steel safeguard in light of weak market conditions as part of its impending review. The commission is likely to expedite its annual review of the measure in light of increasing global overcapacity, and could announce it next week, sources said. "You can imagine the current situation of the steel industry and global overcapacity requires action from the legislator to support EU industry," one source said. Given weak steel demand within Europe, mill sources suggest the commission's review should stop the 1pc liberalisation of the quota, which provides importers with an increased share of a declining market. Buy- and sell-side sources anticipate a further tightening of import volumes over and above the 15pc cap imposed on the "other countries" quota. There is also talk of further dumping investigations, in addition to the case against hot-rolled coil (HRC) from Egypt, Japan, India and Vietnam. Vietnamese hot-dip galvanised is in scope, as is South Korean and Indonesian plate, and HRC and downstream products from other countries could possibly become subject to investigations. Recent market chatter suggests there could be an investigation of cold-rolled coil from Taiwan, and perhaps other Asian sellers. Mills have for months been pressing for tighter measures, suggesting the safeguard is not fit for purpose. In an interview with Argus in September, Eurofer director general Axel Eggert told Argus the association had asked the commission for a "structural solution" to stop the pernicious impact of global overcapacity, such as a global "tariff-like system". Countries with the largest exposure to overcapacity could have the greatest tariffs in this scenario. In a recent article in the Financial Times , Lakshmi Mittal, executive chairman of ArcelorMittal, said the EU must "urgently address imports" and "intervention is required so that European steel is better protected", adding that emergency trade measures would be a "strong first signal". By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Rio Tinto to invest $2.5bn in Argentina lithium mine


12/12/24
12/12/24

Rio Tinto to invest $2.5bn in Argentina lithium mine

Montevideo, 12 December (Argus) — International miner Rio Tinto will invest $2.5bn to expand its Rincon lithium operation, potentially increasing Argentina's production of the metal six-fold in the next decade, it said today. The company began initial production at Rincon's 3,000 metric tonnes (t)/yr starter plant in November. Rincon in Argentina's northern Salta province is Rio Tinto's first commercial lithium operation. It taps brine lithium. In October, it finalized the acquisition of Rincon from US-based Arcadium Lithium. The new investment will increase annual production to 60,000t of battery grade lithium carbonate. Construction on the expansion should start in mid-2025 and ramped-up production using direct lithium extraction (DLE) technology should start in 2028, eventually reaching capacity early in the next decade. The project will add to Argentina's efforts to become a world-class energy player with lithium, LNG and oil exports transforming the country in the coming years. Argentina was the fourth lithium producer in 2023, with 9,600t, according to the US Geological Survey. It has 3.6mn t of lithium reserves and 22mn t of lithium resources, second only to neighboring Bolivia. Argentina, Bolivia and Chile form the "lithium triangle," which holds around 60pc of the world's lithium resources. Chile is the world's second producer after Austria, while Bolivia's production is negligible. Rio Tinto referenced Argentina's economic reforms, including an incentive mechanism for long-term investments, known as the RIGI, as providing a new environment for investment. The RIGI is applicable to investments over $200mn and provides tax and customs benefits, as well as legal stability. Rio Tinto would join eight projects that have already applied for RIGI approval. President Javier Milei announced on 10 December, his first anniversary in office, that the government was planning sweeping tax reforms that would lower 90pc of the country's taxes, and elimination of exchange rate and customs controls. Monthly inflation in November was 2.4pc, down from 25.5pc in December 2023. In a September 2024 report, the Argentinian government listed 50 lithium projects, with 6pc producing the white metal, 10pc under construction and 14pc in the feasibility phase. The rest were in the initial development stage. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australia’s SGM signs deal to supply rare earth metals


12/12/24
12/12/24

Australia’s SGM signs deal to supply rare earth metals

Sydney, 12 December (Argus) — Australian miner St George Mining (SGM) has signed a deal to supply rare earth metals to a Brazilian rare earth magnet facility over a five-year period, it said today. SGM signed the initial agreement with Brazilian technology agency Senai and the Federation of the Industries of the state of Minas Gerais (Fiemg), with no further details such as volumes disclosed. SGM's supply will support pilot magnet production at the Lab Fab facility in Brazil, which is managed by Fiemg. The rare earth metals will be produced at SGM's Araxá mine in Brazil once the mine launches, with no timeline disclosed. SGM also agreed to work with Fiemg and Senai to promote and study Brazilian rare earth magnet production under separate agreements signed on 12 December. The company will also allow Senai to assess Araxá's facilities for metallurgical testing. The Fiemg's pilot magnet facility is scheduled to begin operations in 2025, with an initial capacity to produce 100 t/yr of rare earth magnets. Fiemg aims to boost capacity to 200 t/yr within three years and establish Brazil as the first large-scale rare earth magnet maker in the southern hemisphere. SGM also signed an agreement to buy the Araxá mine on 6 August, which has 6.3mn t of heavy rare earth mineral deposits and holds niobium and heavy rare earth oxides, from Houston-headquartered fertilizer firm Ifatos. SGM expects the deal to close within the coming months. Fellow Australian miner Meteoric Resources also signed an agreement with Fiemg to supply mixed rare earth carbonates to Lab Fab in June in a deal similar to SGM's recent agreement. Lab Fab's technology and innovation manager Jose Pereira told Argus in June that Fiemg will initially focus on producing neodymium iron boron magnets at the site, while developing other rare earth magnets. Fiemg's latest supply agreement comes just weeks after China banned firms from exporting gallium to the US, cutting off American manufacturers from the supply. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Nornickel sees global Ni surplus at 150,000t in 2024-25


12/12/24
12/12/24

Nornickel sees global Ni surplus at 150,000t in 2024-25

Singapore, 12 December (Argus) — Russian multi-metals producer Norilsk Nickel (Nornickel) expects the global nickel surplus to hit 150,000t in 2024-25, up by around 50pc from its earlier forecast of 100,000t . It largely attributed this to a surge in high-grade nickel production capacities in China. Nickel inventories on exchange platforms have more than doubled on the year to over 100,000t in 2024, according to Nornickel. This, coupled with off-warrant inventories and under-reported stocks, could boost the class 1 nickel surplus to 150,000t in 2024-2025. The surplus is concentrated in the high-grade nickel sector, mainly because of a surge in new cathode capacities. The London Metal Exchange (LME) approved four new nickel cathode brands from China and Indonesia this year, with a fifth brand, JIEN, which recently just applied to be listed on the platform. If approved, the additional combined production capacity from 2024 could reach 130,000 t/yr. About 40pc of the global nickel producers are contending with losses, but prices could rise given an influx of lower-cost Indonesian nickel products that is pushing operations in other regions out of the market, according to Nornickel. The nickel market could also be more balanced owing to high nickel consumption from the stainless steel sector and potential supply disruptions from Indonesia, given uncertainty in RKAB work plan approvals and deteriorating nickel pig iron grades. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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