Steel Mills
US Steel To Make NGOES at Big River by Q3 '23
Written by David Schollaert
June 10, 2021
U.S. Steel wants to make Big River Steel the leader in non-grain-oriented electrical steels (NGOES). To that end, the Pittsburgh-based integrated steelmaker will invest $450 million at Big River’s steel mill in Osceola, Ark., to target the growing demand from the electric vehicle market.
Funded entirely from cash generated at Big River, the NGOES expansion will target a growing customer base in Toyota, GM and Ford—whose electrification spending is expected to surpass $30 billion by 2025, according to a company presentation. The investment will also allow U.S. Steel to use Big River’s technology to produce thinner and wider NGOES to meet a wide-range of specific customer requirements.
NGOES is used not only in electric vehicles but also in power generation applications.
The new NGOES line will have annual production capacity of 200,000 tons. Production of the first NGOES coils are expected to begin in September of 2023.
U.S. Steel’s investment has a strong return prolife with low capital intensity thanks to the significant price premium NGOES commands over hot-rolled coil, the company said in a presentation.
Permitting for the new project is already in place. A U.S. Steel spokesperson declined to provide a ground-breaking date.
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
Read more from David SchollaertLatest in Steel Mills
AISI: Raw steel production eases to 5-week low
Domestic raw steel mill production slipped to a five-week low last week, according to the latest figures released by the American Iron and Steel Institute (AISI). Weekly production is now at the third-lowest level recorded this year.
Nucor maintains HR price at $750/ton
Nucor’s weekly consumer spot price (CSP) for hot-rolled (HR) coil was unchanged week on week (w/w) at $750 per short ton (st) on Monday, Nov. 18.
Mexican court orders sale of officially bankrupt AHMSA
After failing to reach agreements with its creditors, Altos Hornos de México (AHMSA) has been formally declared bankrupt by a Mexican bankruptcy court.
AISI: Raw steel production edges back up
Domestic raw steel production recovered last week, after slipping the week prior, according to the latest American Iron and Steel Institute (AISI) data. Weekly production remains at some of the lowest levels recorded this year.
Cliffs closes its 2024 HR spot book
Cleveland-Cliffs announced the closing of its December order book for hot-rolled coil spot purchases, though it said contract bookings remain available.