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British Steel Scunthorpe rolling may stop if BF closes

  • : Metals
  • 24/09/13

British Steel's Scunthorpe rolling mills may not be able to continue operating if the last blast furnace (BF) closes.

The rolling lines are powered by gas captured from the BF process. Recent furnace stability problems and the subsequent lack of gas mean the company has been intermittently operating some lines. It is currently running one BF, which it has fed with stocked raw materials.

"If they shut the last blast furnace and import semis they would have to put some liquid gas solution in place and modify the reheat furnaces to be able to run on this different gas supply," a source said.

The move to one furnace and reduction in gas supply has already affected availability of some products, and service centres expect tight universal channel supply in the coming months as the company opts for heavier, less lossmaking products.

Production at Skinningrove and Teesside could continue, as both sites already have gas supply. But rail production at Scunthorpe would cease without any investment in gas supply. Rail is one of the more profitable businesses in the group, and also important for the wider UK as it is a major supplier to Network Rail.

Some market participants are gearing up for Jingye, the Chinese owner of British Steel, to walk away. Executives from British Steel, and local politicians, are visiting China for discussions with Jingye, sources suggest.

A spokesperson for British Steel refused to comment on "hypotheticals". "We are in ongoing discussions with the government about our decarbonisation plans and the future operations of our UK business. While progress continues, no final decisions have been made," the spokesperson said. A decision on the BFs could be made in the next few weeks, with them both potentially closing before Christmas, sources suggest.

Speaking in Parliament earlier this week, business secretary Jonathan Reynolds said he was "heavily constrained" in his options for British Steel and operating on a shorter time window than the previous administration.

The Chinese market has weakened considerably in recent months, which will have affected Jingye financially, along with all other mills, sources said.


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25/07/16

Rio Tinto’s copper output rises 15pc on year in Apr-Jun

Rio Tinto’s copper output rises 15pc on year in Apr-Jun

Sydney, 16 July (Argus) — Anglo-Australian mining company Rio Tinto produced 229,000t of copper — including copper in concentrate and refined metal — in April-June 2025, up 15pc on the year, driven by record high output from its Oyu Tolgoi underground mine in Mongolia. The company maintained its 2025 copper production guidance range at 780,000-850,000t, but now expects output to sit in the upper end of the band, it said in a quarterly report on 16 July. Rio Tinto's Oyu Tolgol mine hit a record high production of 87,000t of copper in concentrate at in April-June, up 65pc on the year (see table). The company plans to ramp up production at the mine over the next few years and reach an average of 500,000 t/yr of copper by 2028-2036. Rio Tinto's copper concentrate production at its Escondida mine in Chile, which is operated by Australian producer BHP, reached 87,000t on an equity basis in April-June, up 4pc on the year because of increased mining. The increase came despite a drop in ore grades at the open-pit copper mine to 0.95pc Cu from 0.99pc Cu a year ago. Rio Tinto's copper refining operations slowed at the Escondida mine and the Kennecott mine in the US. Geotechnical challenges at the integrated copper mining operation in Kennetcott, located just outside Salt Lake City in Utah, decreased the volume of concentrates available for refining. This pushed down the site's refining output by 16pc on the year. Rio Tinto is expanding the Kennetcott mine capacity by 250,000 t/yr by building an underground infrastructure. The expansion is expected to be completed by end of 2025. By Avinash Govind Rio Tinto's Apr-Jun copper output 000' t April-June '25 April-June '24 y-o-y Change (%) April-June '25 April-June '24 y-o-y Change (%) Kennecott (refined copper, 100pc basis) 40 48 -16 82 95 -14 Escondida (copper concentrate, equity basis) 87 84 4 176 155 13 Escondida (refined copper, equity basis) 15 15 -4 28 30 -6 Oyu Tolgoi (copper concentrate, 100pc basis) 87 53 65 152 99 54 Total 229 199 15 438 379 16 Rio Tinto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil fills coated steel quotas quickly


25/07/15
25/07/15

Brazil fills coated steel quotas quickly

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Import tariffs cost US steel mills $39mn in May


25/07/15
25/07/15

Import tariffs cost US steel mills $39mn in May

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Trump threatens 35pc tariff on Canada by 1 August


25/07/15
25/07/15

Trump threatens 35pc tariff on Canada by 1 August

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US inflation quickens to 2.7pc in June


25/07/15
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US inflation quickens to 2.7pc in June

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