Nucor Gallatin to reach full run rate in 2Q

Electric arc furnace (EAF) steelmaker Nucor expects its expanded Gallatin flat-rolled steel mill in Kentucky to ramp up to its full capacity in the second quarter, a further delay for the mill.

The 3mn short tons (st)/yr expanded steel mill is running about six months behind schedule, the company's chief executive Leon Topalian said on a fourth quarter earnings call this afternoon.

"We'll see how market needs and demand go and meet that demand," Topalian said.

No current run rate for the mill was released. Gallatin went through a long expansion process that grew its production capacity from 1.6mn st/yr to 3mn st/yr. In November, Nucor said it was expected to ramp up to its full production in the first quarter, a delay to a previous estimate of a December full run rate.

The mill has not been operating well since completing its expansion in June 2022, according to many market sources, who say the mill is still being plagued with production issues.

By Rye Druzin